Bike-share and motorized scooter workers’ comp risks

Electric scooters and dockless bikes are popping up everywhere. Some employers are encouraging their use by paying rental fees. Yet, the laws for operating scooters are just emerging, operation and safety information varies from company to company, and some are not properly maintained. Helmets may not be available. User agreements limit users to binding arbitration and/or disclaim liability, which can make an employer vulnerable if an employee injures others. While state legislatures are beginning to consider scooter bills, this craze is new and few regulations currently exist, so employers need to evaluate their use as part of a risk management plan and update their policies.

Although an employee’s travel time to and from work is generally not covered by workers’ comp, employers that subsidize transportation costs should be clear that such arrangements are voluntary and that the employer is released from liability for injuries or harm caused by or to employees during their commute. Also, the employee should accept financial responsibility for any injuries caused to third parties while using the commuter benefit.

If an employee uses a motorized scooter or bike for a work-related purpose, such as to and from a meeting or for a business-related errand, and is injured, a workers’ compensation claim could result. Employers may decide to prohibit all use of bike-share and scooter services during work hours. Those that wish to allow their use need to make sure that their workers’ compensation and general liability coverage cover such incidents and develop policies that employees agree to abide by.

New transportation technology is developing rapidly. Employers must be aware of what technologies their employees are using for business, ensure appropriate coverage, and set reasonable terms of use.

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