Living VICARIOUSLY through others…literally!
You CAN be liable for the actions of your employees- no matter what type of business you own! Whether you have a restaurant, cleaning service, sell life insurance or offer financial advice…your employees can expose you to liability under the legal theory of “Respondeat Superior” or VICARIOUS LIABILITY!
The Latin term “Respondeat Superior” literally translates to “let the superior make answer”. For our purposes, this means an employer is generally liable for the torts its employees commit within the scope of their employment.
Courts in Michigan have held that although an act may be against an employer’s instructions, liability can still attach if the employee accomplished the act in furtherance, or the interest, of the employer’s business. Yet more, even in the case of intentional torts, courts have decided that an employer can be held liable for its employee’s conduct if the employer “knew or should have known of its employee’s propensities and (in some cases) criminal record” before an employee committed an act. While there are some exceptions and each case is different, this concept should be of grave concern to employers!
What can you do? For starters: due diligence during the application/ hiring process, adopting certain policies governing employee conduct, continuous employee engagement/ training and making sure you have adequate insurance coverage. Even more importantly? Contact C&G Solutions to assist you today!
*Please be sure to read the disclaimer section of our website