While some municipalities and departments nationwide have opted for a zero-vehicle take-home policy to avoid any possible liability, others have taken a more balanced approach because they believe the benefits far outweigh the potential risks.
At the Government Fleet Expo in Louisville this May, I attended the hour-long breakout session “Zero-Emission Vehicle (ZEV) Infrastructure for a Decentralized Fleet.” The topic of home charging was noticeably absent.
“Why?” I asked the speaker during the Q&A.
The answer? Liability.
Yet, survey a large fleet of passenger vehicles, and you quickly realize that relying entirely on public charging stations (where rates are 3x higher) or building enough on-site infrastructure to charge every electric vehicle (EV) becomes impractical once your EV fleet reaches a certain size.
These obstacles are especially apparent when every employee’s home can be used as a budget-friendly, time-efficient fueling station available from day one.
The general fear of liability did not start with EVs, and some organizations allowing gas vehicles to go home have had to deal with unfortunate incidents.
For example, in Anne Arundel County, Maryland, there was a federal lawsuit alleging false arrest when an off-duty officer made a traffic stop with his children in his unmarked patrol car. More recently, a woman in north Alabama threatened a lawsuit and filed claims against two cities seeking a total of $2 million when she was injured in a head-on collision with an off-duty officer.
While some municipalities and departments nationwide have opted for a zero-vehicle take-home policy to avoid any possible liability, others have taken a more balanced approach because they believe the benefits far outweigh the potential risks.
Those with take-home fleets use a variety of strategies to limit liability, including insurance coverage, driver use policies and agreements, driver training, telematics, and monitoring. So, what makes EVs different? What has fleet managers so spooked? The added layer of home charging.
Larger fleets of passenger vehicles may run into issues relying entirely on public charging stations (where rates are 3x higher) or building enough on-site infrastructure to charge every electric vehicle.
Photo: Kindel Media/Pexels
Unique Risks of EVs
Unlike internal combustion engine (ICE) vehicles, EVs must be plugged into the wall or charging equipment and use an employee’s home electricity to refuel overnight.
“This relationship between the organization’s property and the employee’s home opens a potential set of new issues that fleet managers need to get ahead of,” Attorney Jason Goldfarb, a partner at Falcon Rappaport & Berkman LLP who manages the firm’s EV and infrastructure practice, said.
While it’s important to work with your own legal counsel to review your specific set of circumstances and local laws, the following are a few things to consider when trying to reduce the overall liability risk for your organization.
The Type of Charger Can Make a Difference
Level 1 “trickle chargers” are the slow chargers that come with the vehicles, much like phones are sold with a charging cord. These use a standard 120V outlet and are relatively simple to install.
“The primary risk with Level 1 chargers is limited to the adequacy of the existing electrical infrastructure in the employee’s home. Since they involve minimal financial investment and straightforward installation, the liability concerns are relatively low,” Goldfarb said.
Level 1 chargers work well for vehicles that drive less than 15,000 miles a year or have access to on-site chargers during the day if they need to “top up.”
Higher mileage drivers may require a faster Level 2 charger. These require a 240V outlet and may need a dedicated electrical panel. The installation is more complex and involves higher upfront costs.
“When a company owns and installs Level 2 chargers in an employee’s home, they may be assuming significant responsibility. Any issues related to the installation, including potential home damage, could become the company or organization’s liability,” Goldfarb said.
Some of the strategies he suggests exploring to reduce this potential risk include:
- Requiring the employee to have adequate homeowner’s or renter’s insurance covering any issues arising from charging equipment installation and use.
- A clear policy specifying installation and usage requirements for Level 2 charging to ensure it is done safely according to code.
- Limiting the organization’s responsibility and liability through waiver language in the policy while outlining the employee’s obligations.
- Requiring professional installation for Level 2 charging to help ensure it meets safety and regulatory standards. Smart Chargers can add a layer of complexity.
Level 2 chargers can be non-networked (basic) or smart (networked), with smart chargers presenting added data security risks due to their connectivity features.
“On the one hand, smart chargers could help limit liability by allowing remote monitoring and control over charging that can help ensure proper and safe usage,” Goldfarb said. “But on the other hand, implementing smart chargers in an employee’s home introduces data security risks.”
To mitigate these, Goldfarb suggests, “Organizations must ensure these devices adhere to the latest cybersecurity standards to protect sensitive information, and make sure that the employee understands exactly how the data will be used. They should also have clear policies that address who is responsible for maintenance and software updates of smart charging equipment over time to avoid issues down the road.”
By taking on installation responsibility, employees can take advantage of the generous federal tax credits, rebates, and local incentives available.
Who Chooses and Owns the Equipment Is a Factor
“If the company pays for and owns the charging equipment, it’s potentially setting itself up to bear the responsibility for any issues arising from the equipment used, but also from the installation. The liability risk includes potential electrical problems, damage to the home, and equipment maintenance,” Goldfarb said.
At a minimum, fleet managers must ensure that installations comply with all relevant electrical codes and standards to mitigate these risks. To further protect themselves, it’s no less important to have agreements with the employee, the charger equipment company, and the installation company about what is expected and who will bear the costs if something goes wrong.
“You want to think holistically. For example, if the electrician digs up someone’s yard to lay down new lines, who covers the restoration of the landscaping?” Goldfarb said.
He adds that balance here is key because if the terms are too onerous, no employees will agree to participate in your take-home program. Still, if you do not have some good policies and agreements, the organization can be left holding the bag if things go south. Disclaimers may be needed to remove organizational responsibility for installation quality or safety issues arising from employee-owned and maintained equipment.
One way to significantly reduce risk here is by entirely shifting the ownership and installation responsibility to the employee (and choosing to reimburse them for the costs if you want to cover them). This path also enables employees to take advantage of the generous federal tax credits, rebates, and local incentives available in many places to help individuals install charging equipment.
If employees choose to install the charger themselves, the organization can still provide guidance to help ensure that they are following best practices.
For example, they could provide a list of preferred makes and models for the chargers and pre-vetted vendors with contracts and insurance coverage they know will limit the organization’s and homeowner’s damages in the event of an incident.
Goldfarb notes that it is also advisable for the organization to have a “clear use agreement with employees” to help limit liability if organization vehicles are going to be charged on employee-owned equipment and to outline the responsibilities for maintenance, repairs, and upgrades over time.
Consider Safety Training and Use Policies
Fleet managers should implement a comprehensive safety program for take-home vehicles. With EVs, programs should include information on home charging.
A program of this nature should include detailed training on properly using charging equipment to mitigate liability risks. Key topics cover electrical safety, emergency procedures, identifying circuit breakers, and responding to charging malfunctions. The delivery of this training could vary depending on the complexity of the equipment, with online modules suitable for Level 1 chargers and in-person sessions necessary for more complex Level 2 installations.
“It’s crucial to maintain a record of completed training sessions to document that employees have been informed of safe practices. Additionally, the training should comply with relevant state and local regulations for high-voltage electrical work, acknowledging the variability in installation standards from place to place,” Goldfarb said.
Fair and Accurate Reimbursement for Home Charging
Another crucial aspect is ensuring a fair and accurate reimbursement program for the employee’s electricity usage when charging EVs at home. Establishing a transparent and efficient system to reimburse employees for their home electricity costs helps maintain fairness and encourages employees to participate in the home charging program.
“Accurate tracking and reimbursement help mitigate potential disputes and build trust between the organization and its employees. For instance, companies need to be mindful of state-specific regulations, such as California’s Labor Code 2802 (CA2802), which mandates fair reimbursement for employee-incurred expenses. This bill highlights the importance of calculating reimbursements accurately and ensuring that employees are not bearing any out-of-pocket costs for work-related charging,” Goldfarb said.
To achieve this, companies can adopt specialized software solutions that automatically calculate the exact cost of electricity used for EV home charging. Getting charging data from telematics instead of from a charger is recommended to align with the method preferred by the Department of Energy.
Final Thoughts on Minimizing At-Home EV Charging
As the adoption of EVs continues to rise, fleet managers must navigate the unique challenges associated with home charging. By proactively addressing liability risks, implementing robust safety and training programs, and establishing fair reimbursement practices, organizations can leverage the benefits of home charging while mitigating potential downsides.
Balancing these factors ensures a smooth transition to electric fleets, enhances employee satisfaction, and supports broader sustainability goals.
