Control of Equipment

NACCAS_VA

Our organization assigns laptop computers to travelling staff. Now the boss wants to "give" the laptops to the staff and make them responsible for the upkeep. The concept is similar to requiring a carpenter to supply his own tool box even though he's an employee rather than an independent contractor. What are other companies doing with laptops? Who's responsible if they are returned broken? Policies for other types of tools or equipment are welcome.

King

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Our company is considering implementing a policy/agreement that all laptop users will be required to sign, stating that the employee agrees to be responsible for the portable equipment that we issue to them. To be very specific, the laptop, a keyboard, docking station, mouse, 2-batteries, power cord, ethernet/modem card, swappable 3 1/2" disk drive and CD ROM drive, carrying case, MS Office 2000 Small Business Edition and Window 98, port replicator. Unless we return the exact items to the leasing company, our company will be charged. We see this as potentially a large and costly problem.
Is anyone aware of such an agreement currently in place for laptops or other equipment regardless of whether it is purchased or leased? Would appreciate any feedback.

ed r

Manager in MA wanted to withold value of equipment that terminated employee refused to return. Told he couldn't do that because MA law very clearly prohibits such deductions. Expect that most states similar. Manager then wanted to institute a 1. promissory note 2. loan agreement or 3. agreement specifically allowing such deduction for value of the loaned equipment from last paycheck. Found that Attorney General would not go for any of these alternatives. Loan agreements work but only to pursue ex-employee after he has received his last paycheck. AG might only allow an agreement written after termination (when ex-employee would probably refuse to sign such). Only solution is to handle terminations in such manner that employee has equipment in hands when terminated so it can be claimed on the spot. Expect that many employers have poor records of what is out to employees and expect that they don't make it clear when providing the equipment that it is absolutely expected back in good condition. No good solution that I've heard yet. Some HR people I've spoken will deduct value of equipment from last paycheck anyway knowing it's not proper and stand ready to make good on spot if pushed - they claim it works and they do it becasue risk is low. HR people at large banks/insurers I've spoken with don't do it becasue they don't want any bad press.

Ed from Boston

CuriousG

>Our organization assigns laptop computers to travelling staff. Now the
>boss wants to "give" the laptops to the staff and make them
>responsible for the upkeep. The concept is similar to requiring a
>carpenter to supply his own tool box even though he's an employee
>rather than an independent contractor. What are other companies doing
>with laptops? Who's responsible if they are returned broken? Policies
>for other types of tools or equipment are welcome.


I had viewed your posting and at first decided not to comment, then I noticed your wording "give" and realized there is another downside to this idea. If you give the equipment to the employee, you must include the fair market value of the equipment as income on their W-2 form. This means the employee will be taxed for the "gift." If you wanted to be true to the carpenter/skilled tradesman example, you would specify in the job offer that the employee is responsible for providing a laptop computer, of specific model, speed, and features. If the company wants to allow employees to purchase the unit they currently use, you could avoid the inputed income issue.

I see this as a lose-lose-lose situation. Your company losescontrol over its data (maybe even ownership), your company loses the loyalty of its employees, and eventually your company loses good employees. I would rate this as a legal/legitimate idea, but a bad idea all the same.

As an alternative, I would have employees sign a receipt for the computer and peripherals checked out to them. It should specify that the employee is responsible for protecting both the equipment and the software/data on the system. I would include an acknowledgement that "should the equipment be damaged, or data security be compromised due to the employee's negligence, or willful acts, they employee will be subject to discplinary action up to and including termination of employment." This all should be developed in conjunction with a company wide policy on "Information Technology and Its Use."

You have to assume that there are going to be a certian number of maintanence issues with putting laptops into the field. I would do some "basic training" with the users to be sure they know and understand how to treat the equipment. Include such user maintenance issues a 1) cleaning the floppy drive, 2) maintaining/unclogging print heads, 3)avoiding food and drink while using the computer, etc.. This will also establish that the employee has the basic knowledge of equipment use and care to establish when they may have been negligent and disciplinary action is warranted.