Company Vehicle Accidents: Can You Sue Your Employer in NJ?

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If you’ve been injured in a car accident while driving a company vehicle in New Jersey, your situation may be more complicated than a typical traffic collision. Not only do you have to deal with medical recovery and vehicle damage, but you may also be wondering: Who is responsible? What are my rights? Can I sue my employer for damages?

These are valid and critical questions—especially in a state like New Jersey, where workers’ compensation laws typically prevent employees from suing their employers directly. However, there are specific exceptions where legal action against an employer is not only possible but necessary for fair compensation.

This guide breaks down when and how you might be able to sue your employer after a company vehicle accident, explains relevant legal principles like vicarious liability and negligent entrustment, and outlines what steps to take to protect your rights.

 

When Employers Can Be Held Liable for Accidents

Vicarious Liability in New Jersey

Employers can be held responsible for accidents that occur while an employee is performing job-related tasks. This concept is known as vicarious liability. It applies when the accident occurs during the “course and scope of employment.”

Examples include driving to a job site, delivering goods, attending meetings, or performing any duties directly related to your job. In these cases, the employer could be on the hook for damages resulting from the crash—even if the employee was the one behind the wheel.

Why “Scope of Employment” Matters

The key legal question is whether the accident happened while the employee was acting on behalf of the employer. If it did, then the employer might be held accountable. If the employee was on a personal errand, however, the employer might be off the hook.

 

Workers’ Compensation vs. Lawsuits

What Workers’ Comp Typically Covers

New Jersey’s workers’ compensation laws provide benefits like medical treatment, partial wage replacement, and disability coverage if you’re hurt on the job. In return for these guaranteed benefits, workers typically give up their right to sue their employer.

This is known as the “exclusive remedy” rule, and it’s intended to prevent the courts from being clogged with workplace injury cases.

Why Workers’ Comp Isn’t Always Enough

In many situations, workers’ comp only covers the basics—it may not provide compensation for pain and suffering, emotional trauma, or long-term financial loss. That’s where a personal injury lawsuit may be warranted.

The law allows for lawsuits in limited but serious cases where the employer’s conduct went beyond mere negligence.

 

When You Can Sue Your Employer

Exception 1: Intentional Harm by the Employer

If your employer intentionally placed you in harm’s way, such as by forcing you to drive a dangerously defective vehicle or ignoring your repeated safety complaints, that conduct could rise to the level of intentional wrongdoing. This is one of the most clear-cut exceptions to the workers’ comp shield.

Exception 2: Gross Negligence

Gross negligence occurs when an employer fails to take reasonable precautions to ensure worker safety. This might include ignoring known mechanical issues with company vehicles, failing to provide safety training, or not implementing basic safety protocols.

In these situations, courts may allow a personal injury claim even if a workers’ comp claim is already in progress.

Exception 3: Negligent Entrustment

This legal theory applies when an employer assigns a vehicle to someone who is clearly unqualified or unsafe to drive it. For example, giving a truck to an employee with a history of DUIs could expose the employer to liability if an accident occurs.

Other Possible Exceptions

You may also be able to sue if:

• You were misclassified as an independent contractor.
• Your employer failed to carry workers’ compensation insurance.
• There was a third-party contributor to the crash, such as another negligent driver or a defective vehicle part.

 

Unsafe Company Vehicles and Employer Negligence

Failure to Maintain the Vehicle

One of the most common forms of employer negligence is the failure to maintain company vehicles. If brakes fail, tires blow out, or lights stop working due to lack of maintenance, and this causes a crash, the employer may be legally responsible.

If you’ve reported mechanical issues and nothing was done, this could strengthen your case dramatically.

Ignoring Safety Complaints

Employers are required to act when safety issues are reported. If you alerted your boss about problems with the company vehicle—like strange noises, poor alignment, or engine failure—and they did nothing, their negligence may justify a lawsuit.

 

What If the Employer Won’t Cover Your Damages?

Delays or Denials Are Red Flags

If your employer refuses to assist with accident-related costs such as medical treatment, vehicle repair, or lost wages, they may be acting in bad faith. This could also include failure to report the incident to insurance or discouraging you from filing a workers’ comp claim.

You have legal rights in these situations. A workers’ comp attorney or employment lawyer can help you enforce them.

 

Real-World Scenarios That May Justify Legal Action

Legal action against your employer may be warranted in the following types of situations:

1. You were assigned a vehicle with known safety issues.
2. Your employer refused to replace worn-out tires or failed brakes.
3. You were forced to work excessive hours and crashed due to fatigue.
4. You were directed to take a company vehicle into hazardous conditions without proper training or protective measures.

If any of these apply to you, a lawsuit may be the only way to recover your losses and hold the employer accountable.

 

How to Prove Your Employer Was at Fault

Building a Strong Case

To successfully sue your employer, you’ll need to show evidence that their actions (or inactions) directly contributed to the accident. Useful documentation may include:

1. Photos of the vehicle and accident scene
2. Vehicle maintenance records
3. Witness statements from coworkers or bystanders
4. Emails or messages related to the crash or the condition of the vehicle
5. Your work schedule and route assignments
6. Police and medical reports from the day of the incident

An attorney can help you organize and present this evidence effectively.

 

What to Do Right After a Company Vehicle Accident

If you’ve been in an accident in a company vehicle, here’s what you should do:

1. Get medical help immediately and follow your doctor’s advice.
2. Take photos of the accident scene and vehicle damage.
3. Report the incident to your employer and get a copy of any reports filed.
4. File a workers’ comp claim if you’re eligible.
5. Consult with a qualified attorney to explore additional legal options.

Acting quickly helps preserve critical evidence and keeps your legal rights protected.

 

Frequently Asked Questions

Can I sue my employer if I got into an accident in a company vehicle in New Jersey?
Yes, in certain situations you may be able to sue your employer. While New Jersey workers’ compensation laws typically prevent direct lawsuits against employers, exceptions exist. If your employer’s actions involved gross negligence, intentional harm, or failure to provide a safe working environment—such as assigning you a poorly maintained company vehicle—you may be eligible to pursue a personal injury lawsuit outside the standard workers’ comp system.

Does workers’ compensation stop me from filing a lawsuit?
Generally, yes. Workers’ comp is designed to be the exclusive remedy for workplace injuries, which means you can’t sue your employer in most cases. However, this restriction doesn’t apply when the employer’s conduct rises to the level of intentional wrongdoing or reckless disregard for safety. If your case falls into one of these exceptions, you may be allowed to go beyond workers’ compensation and file a civil lawsuit.

What if another driver caused the accident while I was driving a company car?
If another driver was at fault, you may still have the right to sue that individual or their insurance company. In some cases, your employer could also be held liable if the vehicle you were driving was unsafe or if the accident occurred because you were directed to take unreasonable risks. These types of cases may involve both third-party claims and potential employer liability.

Can I be fired for suing my employer?
Retaliation for filing a legal claim is illegal in New Jersey. Your employer is prohibited from firing, demoting, or harassing you in response to a valid personal injury lawsuit or workers’ compensation claim. If you experience retaliation, you may have grounds for a separate legal action against your employer for wrongful termination or retaliatory discharge.

What happens if the company vehicle I drove was unsafe?
If the accident happened because the company car was defective or poorly maintained, your employer may be liable for negligent maintenance. In such cases, especially if you had previously reported mechanical issues and no action was taken, you may have strong grounds for a lawsuit under theories like negligent entrustment or failure to provide a safe work environment.

 

Final Thoughts: Protect Your Rights After a Work-Related Accident

A car accident involving a company vehicle can leave you dealing with more than just physical injuries. If your employer was negligent or knowingly put you at risk, you may be entitled to more than just workers’ comp. Understanding the exceptions to legal immunity and your right to file a lawsuit is the first step in protecting yourself.

 

Contact The Epstein Law Firm, P.A., Today

Don’t wait to find out whether your employer should be held responsible for your injuries. If you’ve been hurt in a company vehicle accident in New Jersey, speaking to a qualified attorney can help you understand your legal rights and make informed decisions.

Reach out to The Epstein Law Firm, P.A., today to evaluate your case and take the next steps toward justice and compensation.