Side jobs and employees

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oscarcolumbo

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I’m in need of advice. I own a small business with 4 vehicles and 4 employees, I try to treat my guys good. Once a month, I try to schedule us to go and have breakfast as a team at a restaurant before going to work for that day. They know they can come to me with any concerns they have. I treat them with respect etc. My top electrician has, lately in the past two months, been asking me if he can take the van to go and do a side job. It’s happened about five times in these last two months. He fills the van with gas and buys the materials he’s used. His wife is pregnant and she uses the only car they have to get to and from work, should I tell him to stop using my van to do side work? There has to be liability concerns on my part correct? I mean if anything goes wrong with his job, are we liable for that? Thank you guys in advance for any advice.


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At least he's telling you about it and buying the materials.

Liability.... strictly, if you're company isn't doing the work, then it's not liable, but as they say, "Tell it to the judge." Even if he pulls the permit in his own name, if your truck is seen outside the job site, everyone is going to assume it's your job.

Some employers will just say "no side work", but IMHO that can be a bit rough. Do the workers usually drive the trucks home and to job sites? Are they normally allowed some personal use, like stopping at Costco or the grocery store? If you haven't already, make it clear than unless they're driving to/from the shop or job, they're into officially disallowed personal use (which we won't notice) and that anything which could get the company in trouble can also get them fired (I'm sure there's a better way to say all that). You get "He wasn't supposed to be doing that" and he get's the occasional use of the van.

Maybe you can work an accommodation by having him cover the company logo when he's not driving for work?

It's a tough one to balance.
 
If you are ok with the liability then let him do it.
Otherwise the liability is all on you. The customer can say that your company is the responsible party for the work he does on or off the books. The time he puts in on outside work is generally subject to workers compensation payments and liability as well as all other insurance claims. it would be difficult to separate out.

Could result in problems with your license too.

Personally I would rather him do the work and get a commission or bonus or let him apply this as a credit to the customer and keep it on the books. Since you are responsible.

I am sure some others will have some advice.
 
zbang said:
At least he's telling you about it and buying the materials.

Liability.... strictly, if you're company isn't doing the work, then it's not liable, but as they say, "Tell it to the judge." Even if he pulls the permit in his own name, if your truck is seen outside the job site, everyone is going to assume it's your job.

Some employers will just say "no side work", but IMHO that can be a bit rough. Do the workers usually drive the trucks home and to job sites? Are they normally allowed some personal use, like stopping at Costco or the grocery store? If you haven't already, make it clear than unless they're driving to/from the shop or job, they're into officially disallowed personal use (which we won't notice) and that anything which could get the company in trouble can also get them fired (I'm sure there's a better way to say all that). You get "He wasn't supposed to be doing that" and he get's the occasional use of the van.

Maybe you can work an accommodation by having him cover the company logo when he's not driving for work?

It's a tough one to balance.
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Yes they take the truck home, and I have told them that I have no problem with them stopping somewhere if they need to on the way back home, but I didn’t mean one of their jobs. I forgot to mention that he is a great employee and has even helped me when I had a plumbing emergency at my house. I don’t want his attitude to change about our company when I tell him. This is tough! This wasn’t on the test!


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I don't have a problem with this other than the lettering on the truck and whose license is he working under. Unless he has his own license he's using yours and working out of a truck with your name on it. Sounds like he's working for you to me and you are responsible regardless of who keeps the money.

-Hal
 
If he's doing the side work with the idea of going into business for himself, that's one thing. If he's doing it because he can't make it on what he earns with you, that's another.

Either way, you are subsidizing his side business.

One company I was the qualifier for (and did most of the work) had an agreement with me. I could do electrical work on my own time as long as it wasn't the kind of work we did. They fired someone that they caught doing our work on the side with a company truck.

You may not be liable, or you may be, IDK. I do know that if something happens that involves lawyers you will be involved, liable or not.

Rhetorical question, is he earning (working for you) what he's worth? Could you live on what you pay him? Can you afford to pay him more?

Personally, I would not like to have an employee use my "stuff" to do work that my company could have done.

Good luck figuring out your position.
 
The guy is being honest with you and if he’s not harming your business (with a caveat on insurance and licence) let him get on with it.

I worked for a multinational chemical company and had a photographic business as a sideline. Several times I was in the bizarre situation of working for the company wearing my photographer’s hat for my normal commercial rates.
 
I don't post a lot here opting to lurk and read. However, this topic strikes a chord. I'd be concerned about not only liability but workers' comp in this situation. And the liability in not limited to coverage for work related driving. It is in effect anytime he is in the van at any time.

The line drawn is thin and lawyers constantly shift it. WC generally covers injury while on the job and liability on the company's part covers the van and driver for property damage as well as medical for any parties involve. We don't need to get into 'at fault' here because that varies state to state.

Long story short — you are increasing your exposure allowing this side work. I would tend to rethink the situation, but as the say, the horse is out of the barn now. What's worse is that this employee is setting an example for others to follow. I doubt you'd get away with allowing one to do side work and not allowing others to do so.

Not one to give advice much, but I see no other better way than to tell this employee to cool it.
 
Why not pay him a commission for landing the job and have him do the work under your company's umbrella?
 
My first boss used to give me side work, usually jobs he just didn't want to mess with. Now I didn't use his truck or tools, so it's a little different story.

I like the idea about him getting a bonus for getting the job, I did that for awhile with another company. Didn't pay as well as doing the side job, but I didn't have to deal with all the other stuff either and used the bosses truck and tools to do the work.
 
The truck is a huge expense and a huge exposure for liability and other things, like not being there when you need it because it was in the wrong place at the wrong time.

I see two choices. The guy can get his own beater van like everyone else. But I would suggest if he's doing less than two grand a year, proceeds do not pay the cost of the van.

You would be in the same position of being out the two grand annual truck cost (for only a few jobs).

If you want to accommodate you could charge him $200 flat fee for the truck, per instance or every visit, plus all consumables like gas and wirenuts.

You would be onboard for the liability exposure either way.

If proceeds from the job cannot pay to upkeep the truck, may as well not do the job.

I would rather have food at the morning break *every* day instead of the use of your van for my side jobs.
 
oscarcolumbo said:
I mean if anything goes wrong with his job, are we liable for that? Thank you guys in advance for any advice.
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I don't think there is a good clear, cut & dried answer to that question. Normally you couldn't be held accountable for what an employee does on his/her own time because you don't have any control for that they do.

On the other hand if you were sued because of something that went wrong in a civil court (things are a little different there) then a smart shyster lawyer could try to say that you gave permission to use your vehicle, tools and materials so in a way this was part of his unofficial company perks.

The problem with the law is that you never know what people can do until they do it.
 
oscarcolumbo said:
I try to treat my guys good. Once a month, I try to schedule us to go and have breakfast as a team at a restaurant before going to work for that day.

My top electrician has, lately in the past two months, been asking me if he can take the van to go and do a side job. ... , should I tell him to stop using my van to do side work? There has to be liability concerns on my part correct? I mean if anything goes wrong with his job, are we liable for that? Thank you guys in advance for any advice.
Click to expand...

oscarcolumbo said:
I don’t want his attitude to change about our company when I tell him. This is tough! This wasn’t on the test!
Click to expand...

For me, working hungry is the one thing I do not do. Other conditions I may be willing to trade off, but I stop working when I get hungry. The food with break is like charging the cordless tool after running it all morning (or charging it while you get a late start and another breakfast).

Vast majority of jobs like that, we would stop for food at the morning break. Side jobs OTOH, most companies have some degree of zero tolerance policy, usually a signed letter so there is no grey area.

The OP recognizes the employee is under a lot of stress and doesn't want him to flip out on some (either convention not followed about the breakfast sandwich accommodation, or take a misstep and the rowboat the both share goes poof).

The employer's responsibility to schedule breaks and break accommodations, don't want the guys going hungry when they have to share the same rowboat for awhile.
 
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