legal Eagle Straight-forward legal tips for Military and Veteran Business Owners By Kelly Bagla, Esq.
WHEN IS AN EMPLOYER LIABLE FOR EMPLOYEE OR INDEPENDENT CONTRACTOR ACCIDENTS OR MISCONDUCT? It’s always been your dream to open a small family restaurant business. You’ve finally saved up the money to do it and you hire a delivery driver to help you deliver catered food to your customers. One day, the driver calls you panicked and tells you he has been in an accident with the company truck. You start asking yourself who will be the responsible party for all legal related issues? Employers can be held liable for their employees and independent contractor acts under a legal theory known as “respondeat superior,” which is Latin for “let the superior answer.” The general rule is that the employee or independent contractor must be acting within the course and scope of employment for an employer to be held liable. If an employee or an independent contractor causes an accident or injury while doing his job, acting on the employer’s behalf, or carrying out company business, then the employer will usually be held liable. This rule holds employers
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responsible for employee or independent contractor carelessness and misconduct as a cost of business. It also encourages employers to make careful hiring decisions and to be vigilant about who they choose to represent their company. If an employee is carrying out personal business or acting out of personal motives when an accident occurs, the employer might not be held liable. For example, when your delivery driver has finished his shift and decides to run personal errands with the company truck and causes an accident, the employer can argue that the employee was acting independently. If the employee was not acting at the employer’s direction, then there are good arguments that the employee should be held personally responsible for his actions. But if the accident or injury in any way stemmed from actions of the employer, the employer will likely be held liable.
