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Run: Company Vehicle Use Policy

Company Vehicle Use Policy template for setting who may drive, what counts as personal use, and how to report accidents, damage, and citations. Use it to sta...

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Purpose

The purpose of this policy is to establish clear rules for the safe, lawful, and business-related use of company vehicles. This policy is intended to protect employees, the public, company property, and the company’s insurance coverage while ensuring consistent treatment of employees in compliance with EEOC nondiscrimination requirements and applicable wage-and-hour laws under the FLSA.

Scope and Applicability

This policy applies to all employees, temporary workers, contractors, and other individuals who are authorized to operate a company vehicle or a personal vehicle for company business. It applies to company-owned, leased, rented, or otherwise controlled vehicles used for business purposes. **Applicable jurisdictions:** United States. **Applicable roles:** authorized drivers, supervisors, fleet managers, HR, and operations leadership. California employees: any vehicle-related reimbursement, expense treatment, or commuting arrangement must be reviewed for compliance with California wage and hour rules, reimbursement obligations, and applicable insurance requirements. Other state-specific requirements may apply based on where the vehicle is garaged, operated, or assigned.

Eligibility and Authorization

Only employees who are specifically approved by the company may operate a company vehicle. Eligibility is determined in good faith based on job duties, driving record, licensing status, safety history, and business need. To be eligible, an authorized driver must: - Hold a valid driver’s license appropriate for the vehicle class and jurisdiction of operation. - Maintain an acceptable motor vehicle record as determined by the company. - Be at least the minimum age required by law and company insurance requirements. - Complete any required driver safety training, defensive driving training, or vehicle orientation. - Promptly disclose any license suspension, restriction, revocation, or material change in driving status. The company may deny, suspend, or revoke driving privileges based on safety concerns, insurance restrictions, repeated violations, or failure to comply with this policy. Any such decision will be made without discrimination and, where applicable, through the interactive process if an employee requests a reasonable accommodation related to a disability under the ADA.

Vehicle Use Rules

Authorized drivers must use company vehicles responsibly and only for approved business purposes unless personal use has been expressly authorized in writing. Drivers must: - Obey all traffic laws, posted speed limits, and local ordinances. - Wear seat belts and require all passengers to do the same. - Never drive under the influence of alcohol, illegal drugs, or impairing medications. - Never use handheld devices while driving except where lawful hands-free use is permitted and safe. - Secure keys, fuel cards, toll devices, and vehicle documents when not in use. - Park and lock vehicles in a safe location when unattended. - Perform any required pre-trip or post-trip inspection and report defects immediately. - Not allow unauthorized passengers, drivers, or cargo. - Not use the vehicle for illegal activity, racing, towing beyond capacity, or any activity that voids insurance coverage. Smoking, vaping, and transporting hazardous materials are prohibited unless specifically authorized by the company and permitted by law.

Personal Use and Commuting Limits

Personal use of company vehicles is prohibited unless the company grants written permission. If personal use is allowed, it must be limited, incidental, and consistent with tax, insurance, and payroll rules. The company may set limits on: - Commuting between home and work - After-hours personal errands - Family member or third-party use - Overnight take-home privileges - Geographic operating boundaries Employees may be required to reimburse the company for personal mileage, fuel, tolls, parking, or other costs associated with personal use. Any taxable fringe benefit treatment will be handled in accordance with applicable IRS rules and payroll procedures. The company may impute income or make payroll deductions only as permitted by law and with any required employee authorization.

Insurance, Licensing, and Financial Responsibility

The company will maintain insurance coverage for company vehicles as required by law and business need. Coverage may include liability, collision, comprehensive, uninsured/underinsured motorist, and other protections as determined by the company. Authorized drivers must: - Maintain a valid license and any required endorsements. - Immediately notify the company of any license suspension, restriction, citation, or accident involving a company vehicle or personal vehicle used for company business. - Cooperate with insurance investigations, claim documentation, and loss prevention efforts. - Refrain from making any admission of fault, settlement offer, or payment commitment without company authorization. Employees may be personally responsible for losses caused by intentional misconduct, unauthorized use, gross negligence, or violations of law to the extent permitted by applicable law and company policy.

Accident, Damage, Citation, and Incident Reporting

Any accident, collision, theft, vandalism, injury, property damage, traffic citation, roadside breakdown, or safety incident involving a company vehicle must be reported immediately to the employee’s supervisor and the designated fleet or HR contact. After an incident, the driver must, when safe to do so: - Call emergency services if anyone is injured or if required by law. - Move to a safe location and secure the vehicle. - Exchange information with other parties as required by law. - Obtain witness names and contact information when possible. - Take photos and preserve relevant documentation. - Notify the company as soon as practicable, and no later than the end of the shift unless circumstances prevent it. The driver must complete all required incident reports, cooperate with investigations, and provide a good-faith account of the event. Failure to report an incident promptly may result in disciplinary action.

Roles and Responsibilities

**Employees / authorized drivers** must operate vehicles safely, follow this policy, and report incidents immediately. **Supervisors** must confirm that only approved drivers are assigned vehicles, escalate incidents promptly, and ensure employees complete required reporting. **Fleet managers / operations** must maintain vehicle records, insurance documentation, maintenance schedules, and assignment logs. **HR** must support policy administration, training records, discipline coordination, and accommodation requests through the interactive process when applicable. **Company leadership** must ensure the policy is applied consistently and without discrimination in accordance with EEOC requirements.

Compliance, Enforcement, and Discipline

Violations of this policy may result in corrective action, up to and including suspension or revocation of driving privileges, written warning, documented warning, final warning, PIP where performance issues are involved, reimbursement obligations where lawful, and termination of employment. The company will apply this policy consistently and without regard to race, color, religion, sex, pregnancy, sexual orientation, gender identity, national origin, age, disability, genetic information, or any other protected characteristic under EEOC-enforced laws. Nothing in this policy is intended to interfere with employees’ rights under the NLRA to engage in protected concerted activity, nor to limit rights under applicable leave, wage, reimbursement, or whistleblower laws.

Exceptions, Accommodations, and Jurisdiction-Specific Rules

Any exception to this policy must be approved in writing by the company and documented before the exception takes effect. If an employee requests a reasonable accommodation related to driving duties, vehicle access, or travel restrictions, the company will engage in the interactive process and determine whether an effective accommodation can be provided without undue hardship. Jurisdiction-specific rules may apply, including but not limited to: - **California employees:** reimbursement, meal/rest, and expense treatment may be subject to California Labor Code and wage orders. - **New York employees:** incident reporting and retaliation concerns may implicate applicable whistleblower protections. - **Washington employees:** paid sick leave and leave-related travel restrictions may affect scheduling and vehicle assignments. - **Illinois employees:** scheduling and rest requirements may affect route planning and vehicle use. Where local law provides greater protection than this policy, the law controls.

Review and Revision

This policy will be reviewed at least annually and updated as needed to reflect changes in law, insurance requirements, fleet practices, and operational needs. The company may revise this policy at any time, with or without notice, to the extent permitted by law.

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