Legal Eagle: When is an Employer Liable

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 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.

Let’s consider the independent contractor performing work for an individual, for example as a gardener, and accidently or deliberately cause injury to your neighbor’s dog, as the person who hired the gardener, you will be held responsible for your gardener’s actions. You should make sure that your gardener has general liability insurance so you can make a claim for damages that you’ll be paying your neighbor for the injured dog.

Under the legal doctrine of respondeat superior, whether or not the employer knew that the employee or independent contractor might cause harm is irrelevant. A victim does not need to show that the employer did anything wrong. Simply by virtue of employing a person who committed harm while on the job is usually sufficient to establish employer liability.

If an employee harms another employee while on the job, this is generally covered under workers’ compensation. The injured employee can make a workers’ compensation claim for lost wages, medical bills, and any other qualifying expenses. If workers’ compensation covers the injury, the employee likely cannot sue the employer for the same injury unless it stemmed from an employer’s intentionally misconduct.

Becoming a business owner, you control your own destiny, choose the people you work with, reap big rewards, challenge yourself, give back to the community, and you get to follow your passion. Knowing what you’re getting into is smart business because the responsibility of protecting your family and yourself falls on you.

For more information on how to legally start and grow your business please visit my website at

www.golegalyourself.com

Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

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