Legal bee help? Company car question/IRS reg

posted 2 years ago in Legal
Post # 2
Member
224 posts
Helper bee
  • Wedding: June 2017 - City, State

I’m not in legalbut I just wanted to say my husband had a company car for years and never had to pay towards the car including servicing. That’s ridiculous 

Post # 4
Member
1676 posts
Bumble bee

This sounds weird. My husband has a company car and they pay his gas for it too. Usually if you don’t have a company car, but are driving your own car for business reasons, THEY have to pay YOU mileage. It sounds like they got the rule backwards. 

Post # 6
Member
247 posts
Helper bee

Is he union by chance? This would be something to bring up with a union rep for sure if so. Otherwise I’d say he should consult with an employment law attorney in your area. Of course the issue there is if the attorney determines this is in fact illegal and you guys pursue the case, this can put husbands job at risk (I realize this is retaliation which is usually illegal, but not sure how easy that would be to prove anyway.) So, I’d chat with a lawyer. You could ask an accountant to see if you could just suck it up and take the hit each month and then write it off your taxes, if a lawyer tells you it’s in fact legal to do. But, start with the lawyer and then accountant depending what they say 

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beevincent18 :  

Post # 8
Member
247 posts
Helper bee

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beevincent18 :  I totally agree with you, it sounds shady af to be honest. I would say seek out a lawyer who does free/low cost consults because you can at least get your basic question addressed which is, is this legal? And then you can go from there. If come to find out it is legal, I’d say he should consider new employment. Cause this is a) super sketchy of them to do and b) could be an indicator of financial problems with the company, or more nickel and diming to come. I don’t trust it. Also, avvo.com for lawyer searches. 

Post # 10
Member
2527 posts
Sugar bee
  • Wedding: August 2018

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beevincent18 :  Also not in legal, but I recieve a car allowance to use for a car I purchased on my own and a gas card, basically I pay for my weekend gas (although I never drive on the weekend) and everything during the week is covered. 

My husband has a company fleet vehicle and pretty much everything is covered, unless we took a long trip on the weekend or vacation we wouldn’t be able to use his gas card for that.

This sounds really bizarre, I have other friends with company cars and pretty much everything is covered. I would imagine a company could make up whatever rules they want though?

Post # 12
Member
5047 posts
Bee Keeper

I don’t know enough about the legalities of it, but general a company car is in lieu of paying YOU mileage for the wear and tear on your own car.  So I would either say no or give them back their car and let them know they can pay you mileage (which is 58 cents per mile, effective 01/01/19).

Are you sure he understood them right?  Are they under the impression he uses the car for personal use and are going to charge him for anything above the mileage it takes to get to the home store?  Which still wouldn’t be right if he is required to go to other locations further away, but would at least make more sense.

Post # 13
Member
2527 posts
Sugar bee
  • Wedding: August 2018

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beevincent18 :  Yeah, I would imagine companies can create their own policies so he may be screwed. As another PP asked, are you sure they aren’t saying that they’re going to charge him when he drives the car for NON work purposes?

Post # 14
Member
9101 posts
Buzzing Beekeeper

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beevincent18 :   Having the employee pay mileage totally defeats the purpose of giving them the company car, so this doesn’t make sense. I think someone is confused somewhere. Can you copy & paste the email here? (Just the part where they explain what’s changing, no identifying info)

Post # 15
Member
1490 posts
Bumble bee
  • Wedding: September 2015

I know nothing about this area of law. I can only say generally that if this commute charge or anything the company charges him brings him below minimum wage (and/or time and a half if he has overtime hour although I am NOT sure about this!), then it would be illegal i.e. violation of the FLSA.  

At the very least if I were your husband I would say OK here is the company car back and I will be submitting my mileage to get reimbursed by the company. 

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