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  1. #1
    Law Curious
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    Default Employers demand hourly workers use own funds for company - legal?

    Saludos folks,

    I've heard of this before, but a demand placed on a person I know recently brought the issue to mind again. The person in question worked as a handyman for a company, with the understanding that the credit card ("P-card") issued to him was to be used for fuel for the company van plus supplies for that job (tools, hardware, also furnishings for the stores and offices where repairs were made). The limit on this card was set at an amount the employee and his employers agreed upon as reasonable to meet bi-weekly expenses, and then was lowered (without notifying the employee) about two weeks ago. At the same time, the couriers hired by the employers quit unexpectedly, and the handyman was asked to cover their routes (to about 20 stores, in about a 7-8 hour radius) in addition to his given tasks.

    The employee was terminated on the grounds that he did not call or show up for work (nB he had called, left messages and e-mails, and spoken with the supervisor's personal assistant) and "refused to find his own solution" to what prevented him from working in the first place--namely, pay for gas for the company van and any other supplies (which can run $250-300 per trip) out of his own pocket, to then be reimbursed by the company. Such a requirement is nowhere to be found in the "employee handbook" that this person signed in order to work for the company (the franchise is in NY state, though its central offices are in Tennessee).

    My question is--is it in any way legal for employers to require of their workers that they use their own funds to cover company expenses? As one might expect, the employers gave the employee no hire letter upon commencing his employment, and much of the arrangements in the employee's job were verbal. But, on the other hand, the employee was given a company expense card, which does seem to imply that the company would cover work-related expenses, not the employee.

    The grounds for fire seem particularly unjust since the employee was paid $16 per hour for his work, while the employers earn $8500 per month plus sales commissions. Your insights into this matter will be most gratefully appreciated.

  2. #2
    Law Curious Fabiane's Avatar
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    Jan 2011
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    No it is not legal in any way for employers to require of their workers that they use their own funds to cover company expenses .
    But it can be as the law governing this thing is old and is never been reviewed , I would say you have raised a very nice and new point .

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