Company Liability For Employee Actions
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FAQ
Definition: The legal responsibility for one's actions, in particular the responsibility to compensate a third party harmed by those actions. ?The court sought to determine who would assume liability for the accident.?
As a general rule, the law holds each person responsible for the consequences of his or her own actions ? if your intentional or negligent conduct results in injuries to another person, you may be held civilly liable for the reasonable monetary value of any damages proximately caused by your actions.
Under a legal doctrine sometimes referred to as "respondeat superior" (Latin for "Let the superior answer"), an employer is legally responsible for the actions of its employees. However, this rule applies only if the employee is acting within the course and scope of employment.
However, if a supervisor had prior knowledge of the propensities of an employee, they may be subject to personal liability if they (1) negligently hire the individual, (2) authorize or cooperate in the wrongful conduct, or (3) have such expansive authority that their actions are analogized best to that of a principal.
These situations are common. They're known as "employer liability" or legally as respondeat superior.