QUESTION
Company vehicle stolen with employee tools on board, when insurance pays is the company allowed to keep the money left over from buying new tools?
Asked on Oct 30th, 2012 on Labor and Employment - Oregon
More details to this question:
The company trucks were broken into three employee tool boxes were stolen along with company equipment. Each tool box had about $2,000 in tools. Insurance paid 83%value for entire theft. Company wants to just replace tools as cheap as possible and that way they can keep the excess money. Or do they owe a check of 83% to each employee?
3 ANSWERS
Steven Lee Miller
Maybe neither. The probably owe the replacement value of the tools. In fact depending upon what you did for a living, and how much you were paid, you may never had an obligation to supply your own tools at your own expense to begin with. The owner of the business per labor code section 2802, is responsible for all expenses discharged with respect to the business on behalf of the employee.
Answered on Nov 01st, 2012 at 9:53 PM
I suspect so, but do not know. Company paid the premiums, they own the policy. If you were made whole with the new tools, why would you have a claim on their policy You may want to consult with an attorney that handles insurance claims. I answer questions about employment law. Likely, the employer is not liable to you at all for the theft. Have you considered making a claim against your own insurance co?
Answered on Nov 01st, 2012 at 9:36 PM
Administrative Law Attorney serving Sherwood, OR
Partner at
Employment Law Professionals Northwest LLC
3 Awards
The employer owes you for the replacement value of your tools, since they were responsible for their security. They are a party to the insurance policy, not you. You are not required to accept only 83% of the value of your tools. This advice is based on the limited facts that you have provided, additional facts may change the advice. We are not providing you legal advice, rather we are responding to your set of facts based on general legal principles. You should not rely on this information without consulting an attorney and providing the attorney with a complete set of facts. We provide a reduced rate initial consultation for $35.00, if you would like a more complete answer. We are not representing you in this or any other matter, unless and until you and we have entered into a written agreement for services.
Answered on Nov 01st, 2012 at 9:20 PM