Are Employers Liable When An Employee Makes A Mistake Due To Negligence?

In the United States, employers may be held liable for their employees’ negligent actions committed during the course of their employment. This stems from vicarious liability, which holds an individual or entity responsible for the wrongful acts of another person. In certain cases, employees themselves can be held personally liable for negligence or misconduct.

In this article, we’ll outline when an employer is liable for an employee’s negligence, when employees are held liable for their actions, what to do when your employee makes a mistake, and answers to other frequently asked questions.

Read along!

How can an employer be liable for the mistakes committed by their employees?

In general, employers are liable for the actions and mistakes of their employees in the course of their employment. This is due to vicarious liability, which refers to when one party is held responsible for the acts or omissions of another person.

Employers are responsible for ensuring that employees receive proper training and guidance to avoid the legal consequences of being held liable for employees’ actions. Employers may also be held responsible for their employees’ actions that occur outside the workplace during work-related events and activities.

Examples of vicarious liability: 

1. If an employee faces sexual harassment from their co-worker during a work business trip to attend a work-related conference while the employees of the business were staying at an apartment. The employer will be held liable for the employee’s actions. 
2. If you’re an employer of a small business that sells groceries and your employee makes a mistake that leads to another employee being injured due to not receiving sufficient and proper training, you will be held liable. 

Where the employee is not acting in the course of their employment, then vicarious liability may not apply. However, this may not be easy to establish in a court of law.

What is joint and several liability?

Joint and several liability occurs when two or more parties share responsibility for a wrongful act. In some cases, an employer and employee can both be held liable for an employee’s wrongful conduct.

An exception to joint liability is if the employee displayed serious or wilful misconduct.

Can employees be held liable for mistakes they make? 

The answer is yes, employees can be liable for the mistakes that they make when they’re held personally liable for their conduct. 

When are employees held personally liable for their mistakes?

Personal liability can also arise in cases of negligence by an employee, particularly if that employee is a professional. Cases where employees are typically held personally liable usually involve employee misconduct, such as where an employee acts without the consent or direction of the employer, or in breach of the employment agreement.

How to protect yourself against liability

Employees can protect themselves against liability by ensuring their employment contracts provide adequate protection and by following all rules and procedures set forth by their employers. A contractual indemnity may protect the employee by ensuring that the employer is liable for mistakes carried out within the course and scope of employment.

Employers can protect themselves against liability by providing proper training and guidance to employees, establishing and enforcing appropriate policies and procedures, and obtaining appropriate insurance coverage, such as general liability or professional liability insurance.

The majority of protection provided to employees is their employer’s responsibility. Employers need to ensure that their workplace practices don’t go against relevant legislation or any other rules and regulations.

What do you do when an employee makes a mistake?

As an employer, if your employee makes a mistake, you should determine whether you’re liable for the mistake that has occurred as laid out in this article. However, answering this question may require legal advice.

If a mistake has been made and the employee is solely, personally liable, you should inform them so that they can accept liability and respond to the claim. On the other hand, if you and the employee are jointly liable for a mistake, you should agree to accept liability and respond to any claims together. 

Are employers liable for mistakes made by independent contractors? 

Generally, employers are not liable for the mistakes or wrongful conduct of independent contractors. However, exceptions may apply where:

1. The employer maintains a high degree of control over the contractor’s work.
2. The contractor is performing an inherently dangerous activity and the employer was negligent in their supervision or instructions.
3. The employer has hired the contractor to carry out a task that is, by law, non-delegable. For such tasks, the duty of care remains with the employer regardless of whether the task was carried out by the employer or the contractor.

Employers should exercise due diligence when selecting and hiring independent contractors and consider including indemnification clauses in their contracts to protect themselves from liability.

Conclusion

Employees can be held responsible for their mistakes and conduct at work, although this is a relatively rare occurrence. Employees can be held personally or jointly liable with their employers, and this liability may arise for various reasons. As an employee, the best way to protect yourself from liability is to understand your employment conditions and follow all workplace rules and procedures.

If, as an employee, you are unsure about your employment conditions, rules, and procedures, consult with your employer and seek professional advice as needed. Employers should consult with legal professionals to understand their potential liabilities and implement appropriate measures to mitigate risks associated with employee mistakes.