Employee call costs company 5.2 mil
June 9, 2008 by Sam NarisiPosted in: Security and law, Special Report
A lot of companies give employees cell phones to use on the job. But if they aren’t careful, they might end up paying a lot more than the monthly bill. For one company, the price tag topped $5 million — and it almost cost one woman her life.
A woman was driving on a busy Georgia Interstate. She was also speeding and talking on her company-issued cell phone.
She rear-ended the car in front of her, pushing it into a ditch on the side of the road. The driver of that car was badly injured and had to have her left arm amputated.
She sued the woman who caused the accident — and her employer. Why? She said the company was to blame for its employee’s reckless driving. The company settled the case for $5.2 million.
Why did the company have to pay so much? Because the phone was provided by the company, and the woman was making a work-related call at the time of the accident.
Use ‘em wisely
The lesson for HR: Companies can be liable for accidents employees cause while they’re doing their jobs. That means if they’re on the road making business calls or sending e-mails from the BlackBerry you gave them, you might be on the hook if something bad happens.
A solid policy governing the use of company-owned electronics can stop these problems from happening — and take the heat off of the company if an employee decides not to listen and causes an accident.
Some keys to a successful policy:
- Prohibit talking, texting and e-mailing while behind the wheel.
- Remind employees — and their bosses — that they aren’t expected to make calls and do other work while driving.
- If you give employees phones, also provide hands-free headsets.
Cite: Ford v. McGrogan
Tags: accident, cell phone, employer liability, reckless driving


March 11th, 2008 at 9:57 am
This is a manageable problem if employees use common sense and employers adopt a policy. Many states have laws governing cell phone use while driving. No employer issued or subsidized phone should lack a hands-free feature.
June 3rd, 2008 at 4:58 pm
Just another example of a legal system more concerned with making money than the administration of justice. Tort reform is long overdue.
June 10th, 2008 at 2:09 pm
Common sense? Did you say common sense? Just drive down the interstate and look into vehicles you will see lots of “common sense”.
The judges should use common sense when hearing these cases.
June 10th, 2008 at 3:10 pm
I agree with Michael this is a manageable problem but regardless we are at the mercy of the legal system. I for one plan to re-address with our employees. Safety First!
June 10th, 2008 at 3:21 pm
Would be interesting to see what the outcome would be if it was a personal cell phone, but doing company business???
June 10th, 2008 at 5:46 pm
If sense were common, more people would have it. And unwritten policies aren’t worth the paper they’re written on. Make the policy and enforcve it. You cannot trust your employees to simply take a suggestion or say someone in authority verbally told them. Especially if the lawyers are incolved.
June 12th, 2008 at 3:23 pm
Common sense is hard to find. I saw a woman making a right hand turn while holding a drink on her left hand and using the same hand to turn the wheel. Of course her other hand was used to hold the cell phone while she talked away. Yes prohibiting cell phone use while driving is a good ideal, I wonder why most states do not enforce the cell phone ideal as they did with the seat belt? Starting with company-sponsored cell phones is a good place to start.
June 12th, 2008 at 4:11 pm
I fully agree with K. Hamm. Policies must be in writing or there is no policy. Enforcement must be done or there is no need for a policy and there is a total waste of paper.
June 13th, 2008 at 7:56 pm
After reading this article, my boss and I decided to revise our cell phone/driving policy. We held an all employee meeting to discuss. BTW, there have been cases where a person was using their personal cell phone and had an accident. It even happened after-hours. The injured was able to create a case against the company because the person was conducting company business on the call. If you do a little research, you can find all kinds of cases. Scary!
June 18th, 2008 at 1:21 pm
Most states now have a law that cell phones must not be used while operating a motor vehicle. After the law was passed. While driving home one night myself and another vehicile were run off the road by a lady using a cell phone crossed a double yellow line and was oblivious to anyone else but the person she was talking to. She then proceeded to run a red light almost causing an accident. I have a hands free phone in my car so I pulled over and called the State Trooper never did find out if they caught up to her. This is a serious problem where I live.
August 19th, 2008 at 2:31 pm
It isn’t the use of the hands that causes accidents. Its the non use of the brain. While talking on a cell phone the mind is concentrating on the conversation not on driving a vehicle. Hands free phones are no safer than regular phones since the distraction is still there. In fact, I think the hands free type are worse because you can’t see that the person behind the wheel is preoccupied with a call. At least when someone is on a hand held phone, it is visible. The answer is to outlaw use of any device that takes a drivers mind off driving or to create cars that drive them selves.
August 19th, 2008 at 3:37 pm
In that case we would have to outlaw kids, pets and husbands in the car! LOL