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Does anyone have a sample truck allowance program used in a construction company where the company does not supply a company pickup?

John Sutton's Profile

Would like to know if any other construction companies are providing a monthly truck allowance and if so, how do they run their programs? For example, does the employee sign an agreement that while employed by the company he will always use the allowance to buy or lease a pickup truck of a certain size and cab configuration? Is the employee required to show proof of insurance (with certain minimum coverages) is being maintained at all times. Can the employee be required to display the company’s name on the truck during all working hours (or even 24/7)? Can the employee be required to obtain a new truck every so often?


Topic Expert
Karoline Mello
Title: Director, FP&A
Company: Apollo Group
(Director, FP&A, Apollo Group) |

You can try to enforce all of that. You are writing the policy. You definitely should require all your independent contractors and employees to have specific and adequate levels of insurance because in most states the company can be liable up to a certain amount (Arizona is one of them) for accidents that would occur in the course of business. If the driver is driving to a job site you are liable. If they are driving to lunch you are not. You can ask the employee to display the name, but there isn’t a specific law that I know to prohibit you from asking or prohibit them from declining. You would have to make it a condition of employment. Why not gather a round table of the better drivers and ask over lunch?


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