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are employers liable to third parties for the employee’s actions, and if so what

ID: 342801 • Letter: A

Question

are employers liable to third parties for the employee’s actions, and if so what is an example where the employer would not be liable? How does an employer protect itself from liability to third parties from Independent Contractor actions? Why do we have Workers’ Compensation Statutes and do these Statutes preclude the employee from suing their employer? Can the employee sue third party contractors who are contracting with their employer, even if they cannot sue their employer under Workers Compensation Laws, and if so give an example?

Explanation / Answer

Yes, the employers are liable for the actions of their employees done to third parties during the course of employment under the doctrine of respondeat superior. But the act should take place within the course of employment.

For example when a truck driver of a parcel company makes an accident while going to visit his relatives do not make the parcel company liable because the accident did not take place during the course of employment and it happened during his personal visit.

The employer is not liable for the actions of the independent contractor under respondeat superior based on the fact that independent contractors are not under the direct control of the company and the employer cannot be held liable for something they cannot control.

The worker’s compensation statutes protect the employers from the workplace injury suits by the injured employees. According to worker’s compensation statutes, employees give up their rights to sue the company in case of injuries for the right to receive the worker’s compensation benefits. Hence they prevent the employee from suing their employer.

Yes, the employees can sue the third party even though they cannot sue their employer under Worker’s compensation laws if they feel the third party is responsible for the injury. For example think about the situation where the employee is injured by faulty equipment in the workplace provided by the third party who supplies the equipments to the company. In this case the employee can sue the third party contracted with the employer for his negligence while providing the equipment.