When is an Employer Liable for an Employee’s Negligent Actions?

An employer may be financially responsible for the harmful acts of their employees. See how to support your injury claim against a negligent business and its workers.

When a careless worker injures you, their employer may be required to pay for your damages.

In stores, restaurants, on the road, and even in our homes, we encounter employees of various businesses. If you are injured by someone working in the scope of employment or driving a company vehicle, you have the right to seek compensation from their employer, no matter if it’s a small business or a big corporation.

Why Employers Can Be Held Liable for Employee Actions

In the United States, employers are usually responsible for harm to others caused by an employee’s actions. Each state has its own version of common legal theories that make the employer liable for the wrongful acts of its workers.

Common legal principles of employer liability:

  • Respondeat Superior: A Latin phrase that roughly translates to “Let the boss answer,” is a legal doctrine that the employer is responsible for anything employees do while on the job.
  • Vicarious Liability: Vicarious liability means blame is assigned to a person who didn’t cause the accident but has a legal relationship with the person who hurt you. An employer has a legal relationship with their employee and can be held liable for the actions of the employee.
  • Negligent Retention: When employers don’t take reasonable care when hiring employees, like not performing background checks or continuing to employ a person whom they know may cause harm, the employer becomes liable for injuries caused by that employee.

Most business owners carry general liability insurance to protect themselves from injury and property damage claims. General liability insurance covers things like customer slip and fall accidents, advertising errors, damage to others’ property, and can also pay for injuries caused by employees.

Proving the Employer’s Responsibility

No matter how terrible the circumstances of your injuries, the burden is on you to prove that the employer of the person who harmed you is also liable for your damages, that your injuries are real, and that all your damages are related to your injuries.

To prove employer liability, you’ll need to show one of the following:

  1. The at-fault person was acting within the scope of employment
  2. The employer was negligent in hiring or retaining the person

Proving the validity of your injury or property damage claim requires solid evidence to support your claim.

6 Ways to Support Your Injury Claim:

  1. Get medical attention: Never refuse or delay medical treatment after an injury. The employer’s insurance company will jump at the excuse to deny your claim, arguing the employee did not cause your injury.
  2. Contact the employer: If an employee injures you, even accidentally, report the incident to management. Ask the owner or manager for the company’s insurance information. For large companies, also get the contact information for the corporate office.
  3. Look for witnesses: Friends and family can provide a statement, but independent witness statements carry much more weight with insurance companies and juries. Get the names and contact information of any potential witnesses, even other employees. If they are willing, record a video of the witness stating what they saw and heard.
  4. Take photographs and video: Photograph or video the area where you were injured. Car accident photographs should include the vehicles and scene from multiple angles. Also take pictures of your injuries throughout your recovery.
  5. Report violent crimes to police: Physical violence is a criminal matter, even if it happens in a business or your home. Unfortunately, there are cases of rape and assault made by workers who come to the home to make repairs, deliveries, or other work-related reasons.
  6. Verify your damages: Request copies of your medical bills and records. Save receipts for out-of-pocket expenses like medicines or crutches. If you had to miss work while recovering, get a verification of lost wages from your employer.

Challenges to Employer Liability Claims

The most contentious part of a personal injury claim for an employee-caused injury is when the employer, or more likely the employer’s insurance company, argues that the person who injured you was not acting in the scope of their employment at the time.

The employer or insurance company may deny liability based on:

  • Criminal Acts – Criminal activity, like assault or drunk driving, is not within any worker’s scope of employment.
  • Working Hours – A worker on a lunch break, running personal errands, or traveling to or from work is not under the employer’s authority.
  • Employment Status – Temporary workers provided by an agency or freelance self-employed contractors are not employees of the company.

Example: Insurer Challenges Claim Against Drunk Delivery Driver

Lily proceeded through an intersection on a green light when her car was violently T-boned by a delivery truck driven by a guy named Lex. Lily survived the collision but would never walk again.

The police investigation revealed that Lex was intoxicated when he ran the red light and crashed into Lily.

Lex worked as a delivery driver for a local auto parts company. The day of the crash, he was driving the company truck when he decided to stop at a local sports bar for lunch. Lex tossed back several beers with his chili burger before he got back on the road.

Lex lost his job, and his employer’s insurance company initially refused to pay for Lily’s damages, arguing that Lex was not acting within the scope of his employment by drinking and driving.

During pre-trial discovery, Lily’s attorney forced the auto parts company to hand over their procedures for hiring drivers and Lex’s employment records. The attorney also got copies of Lex’s driving records, revealing prior DUI convictions.

Lily’s attorney told the jury that Lex’s employer is responsible for the negligent hiring of a delivery driver with a history of driving while intoxicated. The company should have known that a company driver with a poor driving record was a danger to others on the road.

The jury agreed, awarding $2.7 million to Lily for her permanent injuries, future lost earning capacity, and her extreme emotional suffering.

Employee or Independent Contractor?

Some businesses, like the beauty salon industry, classify their workers as independent contractors, meaning they are not legally considered employees of the business.

If you were injured by an independent contractor, you’ll likely need an attorney to pursue your injury claim. A good attorney can tell you if the person who harmed you meets the federal or state legal definition of an employee.

When You Need an Attorney

If you’ve fully recovered from relatively minor injuries, and the insurer hasn’t challenged your claim, you can probably negotiate a reasonable settlement directly with the insurance company.

Calculate a reasonable compensation amount by totaling the cost of your medical bills, out-of-pocket expenses, and lost wages. Add one or two times that amount for pain and suffering. Send a written demand for settlement with copies of your medical bills and records, receipts, and other evidence.

If you’ve suffered serious injuries caused by an employee, or the employer’s insurance company is fighting your claim, you’ll need legal advice from an experienced personal injury attorney to get the compensation you deserve.

When an at-fault driver caused an accident while driving a company car, you may have claims against the driver’s insurance as well as the employer’s policy.

If you are filing a workers’ compensation case because of severe injuries caused by a co-worker, ask an attorney if you can bring a tort lawsuit against your employer under state employment laws. Workplace environment claims for sexual harassment or discrimination may require an attorney specializing in employment law.

Most injury law firms offer a free consultation and case evaluation to injured victims. If you decide to hire a personal injury lawyer, they should agree to work on a contingency fee basis, meaning they won’t collect their fee unless they settle your claim or win your case in court.

There’s too much at stake to face the insurance company on your own. It costs nothing to find out what a skilled personal injury attorney can do for you.

Employer Liability for Employee Acts Questions