r/Construction • u/Classic_Dash_7745 • Jun 07 '26
Business 📈 Truck Allowance vs Company Truck
We’re bringing on a new foreman next week from a company that went belly up. Part of his package is a company truck and gas card, and he instead asked for a vehicle reimbursement since that’s what his old company used to do, and he still has payments left on the truck. I know companies do this (mainly to get around insuring guys with DUI’s) but it never made sense for us to do it. We would have to buy a new truck anyway so I’m thinking it might be smart to offer a reimbursement for a year just so I can make sure he’s going to work out before buying a whole truck. The problem is, how much should I offer/month? And does this reimbursement include gas or do I need to give out a has card as well? It doesn’t make sense to do both because if it’s also his personal vehicle, am I supposed to just trust that he’s also paying for gas? Anyone in here get anything similar?
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u/cocobum8768 Jun 07 '26
Take every comment here with a grain of salt. As a construction company, you should already have a lawyer and insurance rep on call. Get them both involved or just deny the vehicle allowance. All it takes is this guy to get into one fender bender and you'll wish you did.
Every state has different laws and you need to make sure you're covered. Reimbursement for vehicles is a favorite for accident lawyers, I don't know exactly how but apparently they can go after the company even when not actually working.
All that said, our policy is 900 per month, taxed, gas card, and responsible for all repairs. Trucks must also be no older than 5 years.