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Can an Employer Be Liable for an Employee’s Car Accident?

Posted on July 17, 2025 in Car Accidents

If a car accident in California involves a driver who was on duty at the time of the crash, such as commercial truck drivers or delivery drivers, an injury attorney in Los Angeles suggests it is necessary to consider employer liability as part of your injury claim. Employers can be held legally and financially responsible for an employee’s car accident in certain circumstances.

employer liability in an employee car accident

What Is the Rule of Vicarious Liability?

Vicarious liability is a legal doctrine that serves to hold a principal party responsible for the careless or reckless conduct of its agent. In cases where there is a relationship of control between the principal and the agent, the rule of vicarious liability can hold the principal legally accountable for injuries caused by the agent.

Under this rule, an employer in California can be held vicariously liable for the negligence and mistakes of an employee. However, the employee must have been on duty or performing job-related tasks at the time of the incident for this rule to apply. If an employee was off the clock – even while driving a company vehicle – the employer may not face vicarious responsibility for the car accident.

When Can an Employer Be Held Directly Responsible?

Whether or not an employee was fulfilling job obligations at the time of the car accident, it may still be possible to hold an employer liable based on the circumstances. If the employer contributed directly to the collision in some way, this could place independent liability with the employer regardless of the employee’s work status.

Examples of employer negligence in relation to automobile accidents include:

  • Giving a worker a poorly maintained work vehicle to drive
  • Ignoring vehicle recall notices issued to the company
  • Poor driver hiring, training or supervision protocols
  • Hiring an unlicensed or unqualified driver
  • Pressuring drivers to break the law, such as exceeding hours-of-service rules
  • Violating federal commercial vehicle safety laws
  • Failing to fire or penalize a known dangerous driver

If there is evidence that an employer is directly liable for a car accident in California, the company itself could be held responsible for a victim’s damages. The employee who was driving may be held accountable for his or her role in causing the collision, as well. Identifying employer liability can grant you access to a commercial insurance policy to use for greater coverage.

When an Employer Is Not Liable for a Car Accident Involving an Employee

If a driver caused your car accident while he or she was not on duty, even if the individual has a commercial driving job, it may not be possible to hold the employer vicariously liable. If the employee was commuting to and from work, driving off the clock, or making a personal stop, this can protect the employer from liability. In a rideshare accident case, if the driver is logged off the app, the company cannot be held responsible for an accident.

Finally, if an individual causes a car accident while driving for work-related purposes but is classified as an independent contractor, an employer typically cannot be held liable. Independent contractors are not supervised by their employers to the same degree as employees, which relieves the employer of vicarious liability. However, liability may still apply if the contractor was carrying out an essential job function for the employer at the time.Understanding employer liability after a motor vehicle collision involving a working driver in California may take a consultation with a car accident attorney in Los Angeles. Contact Rose, Klein & Marias, LLP at (866) 674-5150 for a free case review to learn more about your specific case.