Chapter 3
VICARIOUS LIABILITY
Summary
- An employer is liable for the acts of its employees or supervisors when performed within the course and scope of their duties and responsibilities.
- An employer who fails to make reasonable inquiry as to the qualifications of an employee may be held liable for damages resulting from negligent hiring.
- An employer may be liable for the off-duty acts of an employee sent home because of intoxication and allowed to drive a motor vehicle.
- An employer is not liable for damages caused by an independent contractor.
- Employers are strictly liable for all damages resulting from sexual harassment caused by a supervisor, where the harassment also results in some tangible employment action such as a pay cut or termination.
- Employers may have liability for sexual harassment not resulting in a tangible employment action if the employer lacks a written policy prohibiting harassment or fails to take prompt remedial action to resolve a harassment complaint.
- Liability will attach to a parent company that actively participates in the personnel decisions of its subsidiary.