When a company car is involved in an accident in California, liability is rarely straightforward. Whether you’re an employee, a fleet manager, or an employer, understanding how responsibility is assigned matters.
In many cases, vicarious liability (also known as “respondeat superior”) means the employer may be held responsible for the actions of an employee if the employee was performing work duties at the time of the crash. California courts have affirmed that even if a trip was not explicitly ordered, if it is tied to the employee’s job, the employer may still be liable.
But liability can shift. If an employee was running personal errands, or if they were driving recklessly or under the influence, the employee might bear full liability, or share liability with the employer. Independent contractors present a different scenario: unless the employer exerts tight control over how and when they drive, vicarious liability may not apply.
Employers can also face claims under negligent entrustment—for example, if they knowingly allow someone unfit to drive to operate a company vehicle. On the flip side, employees must still obey traffic laws, report vehicle issues, and use company vehicles only for permitted business activities.
