An old friend is involved and i am curious about the law instead of his opinion.

A man gave his employEE a credit card with employeR business name and personal name on it. They now disagree on the conditions it was to be used by the employEE. The employEE used it for gas in truck to go to work, parts for truck, dinners sometimes, and materials for jobs. Employee also bought a washer and dryer for his home, claiming that it was part of the deal, as boss was shadey and was paying some wages in cash and with things purchased with this credit card. Everything was verbal. As the story goes, only the employEE used the card.

Now these two are fighting and employeR wants employEE to pay the total credit card back or he will involve the law.

Card was not stolen, but freely given with verbal agreements between them.

Is the employeR liable for the charges, or can the employEE be liable?

Sounds like he spent a little too much.

He would have to be a really nice Boss to give him a CC without limits.   Sounds as though friend embezzled money.

I can't answer the question but back in the late 1970s my employer gave me an AX card with the company and my name on it. The bills came to me and I paid AX. I put in expense reports for reimbursement from the company for anything that was company related travel expenses. I did not realize that the company got a print-out of all charges to the card however until one day I accidentally saw the report. After that I was very careful about what I used that card for! [I had purchased a firearm on that card, nobody ever questioned it and I paid for it and never tried to claim it as an expense, but was uncomfortable once I realized that they had a list of charges.]

In general, verbal contracts ARE legal, but very difficult to enforce without witnesses. EmployEE is up the creek.

Is the employEE still employed? If so, he probably needs to pay to keep his job.

If not the "law" will tell the employER that it is a civil matter.

It sounds like there is stupid on both sides of that deal.

If it goes to a court, it will come down to who the judge believes. In this case, the employee's version doesn't sound (to me) like something an employer would authorize once it gets to buying a personal washing machine. If the judge feels the same way, employee loses on at least some of the charges.

The judge will also be used to people lying in this type of case and chances are that one or both of the witnesses will lie here to try to convince the judge. It all comes down to what makes sense to the judge and who is more believable.

Could start criminal, but more likely to go civil. Assuming the card is in the employer's name, but if not, employee will be liable to the card company and would have to make his case separately against the employer.

Of course, none of this is legal advice and is just hypothetical without full knowledge of the facts.

No way for a 3rd party to judge what really happened either or both could be lying.

I know when I worked for a big company I was given two cards, one was a P card that I used to buy rolls of Cat5, Fiber Jumpers, connectors, tools anything for the job. The other was a T&E card, used for Fuel in work vehicles, airfare, rental cars, hotel stay, parking, any meals (while out of town).  Basically Transportation, Food and Lodging while out of town.

I had to keep all receipts, scan them and attach them to my weekly expense reports.
We were told Limits on the cards per day, I think it was 1000 or 1500 on the P card and meals were 20.00 a day for breakfast, 20.00 for lunch and 35.00 a day for Dinner.

I would have never put anything on there not listed above (or not without e-mailed) permission from the manager or higher, but that is just me.

The company I work for now much smaller give me a single card with the company name on it, not mine.  I use it for office supplies, tools, fuel for work vehicle or parts needed for jobs.

I copy all my receipts, keep one in my folder with a Note on what/why it was purchased and I put one in the office receipts folder for the accountant to be able to claim them on the companies taxes.

The above situation sounds shady from both ends, but without overhearing the convo, their is no way to know.

There are many types of "Company credit cards".  The liability of the card can be either the employee on the card or the company.
Some cards are consigned by the company but responsibilities are the card holder for payment.
Without looking at the contract there isn't anway for you to tell.
Did your buddy sign anything before taken possession of said card ?

If a disputed personal washer and dryer shows up on a company credit card I can't see the employee making a believable case in court.

FWIW, I work for a very big company everyone knows.

My corporate card is under my name and home address. Any charges the company does not approve for payment are legally my personal responsibility.

Yep.

/thread

The card had the business name, and the employER personal name on it. The employER has admitted giving the employEE the card, but now says it was for emegencies only. I find that an odd reason to hand someone a credit card unless they were family.

I was present at a meeting this morning between them as a witness. They could not agree on what  the original verbal agreement was, any limits, what was allowed to be charged on the card, or anything else. I was amazed at both sides(stories) that were argued. I have never heard anything so ridiculous.

I cannot tell the details as i was there as a witness to a private meeting only. I am not the employEE or the employER.

I do know if you put a person on a card as an “authorized user” you will be liable for the charges and it could effect your credit. This is different, just handing over a card and letting them keep and use it. There are 3 months bills involved. I am shocked it was not questioned by employER on the first month!

I had many questions i was busting to ask, but kept my mouth shut while witnessing and recording the conversation as i was ask to do.

FPNI.

I drive semi. If I carry two five gallon cans and fill them at the same time for my f250 diesel it isn’t much different than buying a washer and dryer. I would be an embezzler.

His boss was shady and he attracted a shady employee it seems.

The employee has leverage. Cash non reported wages....

Per the cardholder agreement employER is liable for the charges.

EmployER should also immediately terminate the employEE for cause and if the employEE files for UI the employER is free to contest it on the grounds of unauthorized use of the corporate credit card.

This is how it worked where I was back in the day when it was cool to have a corporate AMEX card. After a few layoffs and company getting stiffed for hundreds of thousands of dollars, company cancelled AMEX cards and told employees to put all expenses on your own card and submit a expense report.

Employee.
He used it for non-business expenses.

My employer gave me (and other employees) an AMEX for business expenses.
I've put personal expenses on it that were deducted from my after-tax pay each month.

That used to be 'OK,' but the boss wants us to stop using it for personal use.
It's a matter of maintaining an easier audit trail I guess.

With my company CC, I am on the hook for all charges.
Submit the expense report and the company pays AmEx.
Don't submit and I get a bill.

Ever read the charger receipt?

It applies as much as the card agreement.

Most start off "I agree to be responsible..."