New Rulings Could Hold Employers Liable for Employee Actions While Commuting
In Michigan, an employer could be held liable for an employee’s actions while traveling if the trip involved a service or benefit to the employer. This is true even if the employee is driving his or her own vehicle, especially if the employee is traveling on business or to an important business meeting. Generally, if an employee has a primary place of business, an employee’s actions while traveling to and from that location do not expose the employer to liability. But in a recent case, the Michigan Court of Appeals considered that an employee’s normal place of employment could be her vehicle.
In the case, the employee had struck another woman with the employee’s own vehicle while “going to work.” Because the employee’s job entailed traveling in her car 60% of the time, the Court determined that she could have been acting within the scope of her employment at the time so as to impose liability on the employer for the other woman’s damages. The Court reasoned that “driving to work” is different for employees who travel significantly than it is for someone who works at one primary location.
Rulings such as this could open the door for more attempts to hold an employer liable for actions of an employee while traveling. Maintaining detailed travel records for employees might help employers defending such cases. Also, comprehensive general liability insurance policies should be reviewed to make sure coverage extends to these situations.
Julie Pfitzenmaier