Employer Liability for Actions

of Employees and Others

Chapter 5
Management Contexts,
Relevant Laws, and Cases
Liability of Employers for Employees

 Vicarious liability: Respondeat superior (let

the master respond).
 Employee actions must be within “scope of
employment.”
 Your Perspective

 Reread the Gibbons and Campbell quotation (2003,

p. 215) regarding the possible implications of
Southport Little League v. Vaughan.
 What is your reaction to the idea that coaches and
administrators who sexually assault players
accompanying them on team trips may be, at least
in part, acting within the scope of their
employment?
Negligence in Employment-Related
Decisions

 Negligent hiring
 Negligent supervision
 Negligent retention
 Competitive Advantage Strategies
Liability Related to Employees

 Develop and follow protocols for hiring employees,

even when a candidate is known.
 Include protocols for reasonable investigation into
applicants’ backgrounds.
 Check references thoroughly.
 Train managers to supervise and discipline employees
appropriately.
 Develop a no-tolerance policy regarding workplace
violence and inappropriate behavior, and train
employees to resolve disputes.
Liability for Independent Contractors

 Employer avoids the prospect of vicarious liability

based on the independent contractor’s actions.
 Degree of control is critical.
 Independent contractor status is determined by
variety of factors.
Negligent Selection
of Independent Contractors

 Exception to general rule of nonliability

for actions of independent contractors.
 Elements of negligence apply if employer
fails to use due care when choosing an
independent contractor.
Terms and Conditions of an
Independent Contractor Agreement
Liability for Acts of Volunteers

 Volunteer: Assists organization in some capacity

for no compensation.
 Liability of a volunteer’s acts depends on level of
control exerted over his/her actions, not on
unpaid status.
Liability for Actions of Collegiate Athletes

 Athletes are not agents of the university, nor are

they employees.
 Courts typically hold that the relationship between
university and its athletes is not one of employer-
employee.
 Vicarious liability should not be imposed on a
university for actions of its athletes.
Competitive Advantage Strategies
Liability of Contractors and Volunteers

 Independent contractors:
 Develop a list of necessary credentials for independent
contractors, and hire only those who meet the criteria.
 Require a list of references, and check them carefully.
 Volunteers:
 Screen and select volunteers with the same care that
you use for employees in the same capacities.
 Use particular care when screening volunteers who will
be in positions of authority and trust with minors.
 Your Perspective

 Would you prefer to work as a

full-time employee of an
organization or as an
independent contractor?
Why do you have this
preference?
 Have you worked as a
volunteer? How was the
experience?