Vicarious liability is a legal rule that holds employers liable for the wrongful actions of their employees. If your employee injured someone else because of their negligence, you may also face consequences. The injured person may file a lawsuit against you or your company as well.
Two important elements can decide if you are vicariously liable.
Employer-employee relationship
You need to have an employer-employee relationship with the person responsible for the incident. Aside from employees, you may also be held vicariously liable for the actions of your:
- Business partners
- Corporate directors
- Company officers
However, vicarious or imputed liability doesn’t cover independent contractors. Remember, independent contractors aren’t your employees. You don’t have a master-subordinate relationship. They don’t work for you; rather, independent contractors are their own bosses who work with you.
Scope of employment
The scope of employment is another key condition. Your employees’ wrongful acts must occur:
- During your employee’s work hours
- While performing a work-related duty or task
If the incident happened after your employee clocked out, you may avoid vicarious liability. This is also true if your employee went for a personal errand or break during their work hours.
Is malicious intent necessary?
Vicarious liability doesn’t require proof of malicious intent. Proving malicious intent is generally only for intentional tort or liability. What’s important is proving the employer-employee relationship and the scope of employment.
Protect your employees and your business
Comprehensive employee training on expected conduct and safety protocols is the first step to avoiding vicarious liability. It’s also best to make sure your business properly documents your employees’ work hours – especially if they go out of the office for work.
Consulting a qualified legal professional may help you further protect your business from vicarious liability. They may also assist you in figuring out your next actions if you face a vicarious liability lawsuit.