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socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 39037
Experience:  Retired (mostly)
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I am a hotel owner in California, I pay my employees mileage

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I am a hotel owner in California, I pay my employee's mileage ($0.65 per mile) for buying business trip such as tools, supply etc stuff. I wander if there is an accident which loss is more than the emplolyee's car insuracne liability limit, for example, total loss employee needs to pay is $50K, and his car insuracne liability imit is $30K, (1) who is going to pay the gap between $50K and $30K? (2) I have general comercial insurance, should this insurance pay? (3) If the employee get injury, does my work-comp insuracne pay it? Thank you very much. /Leo
Labor Code 2802(a) provides, "An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful."

So, if your employee injures a third party's person or property while acting within the scope of employment, then you, as employer are liable for the damage.

And, that means, not just the damage above the employee's insurance deductable. It means all of the damages, because the employee's insurance is intended to cover the employee -- not the employer. The employee is entitled to a full recovery (and, the employee's insurer probably is entitled to subrogation/reimbursement, if it pays the third party's claim before the employer does.

Hope this helps.

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