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Is an Employer Liable for the Actions of Its Employees?

Is an Employer Liable for the Actions of Its Employees?

Under the legal principle of "vicarious liability" (also termed "respondeat superior"), an employer may be held liable and legally responsible for the actions of its employees, provided the following two requirements are established:

1.     The employee was acting within the scope of his/her employment, and

2.    The employee was acting in furtherance of the employer's business.

It is a long-standing rule of law in Kentucky that an employer is liable for the negligent acts of its employees acting within the scope of their employment.  However, an employer may also be held liable for intentional acts committed by its employees acting within the scope of their employment and in furtherance of the employer's business interest. Courts have even applied this principle in limited situations involving criminal conduct or conduct expressly forbidden by the employer, as long as the conduct is in furtherance of the business interests of the employer.  For example, in a case involving repossession of an automobile, an employer was held liable for the actions of an employee in shooting the vehicle's tires, even though the employee's actions were criminal in nature and against company policy.  Because the employee was acting solely in the interests of his employer in attempting to recover his employer's property, the employer was vicariously liable, and thus held responsible for its employee's actions. 

Kentucky courts have addressed at length the policy arguments and rationale for the vicarious liability principle, including the incentive for an employer who may be held liable for the actions of its employees to be careful in the selection, instruction and supervision of its employees and to take precautions to provide that the company's activities are conducted safely by its employees.