Some real estate landlords and management companies do not seem to fully understand the extent to which they can be held vicariously liable for the torts that an employee commits while on the job. The word “tort” is legalese, and refers a civil wrong (as opposed to criminal) that injures economic relationships or interests, property, or people.  What employers need to understand is that they may face legal exposure for their employees’ actions even if the employer had no knowledge of the wrongful actions, and, even worse, even if the employer actually instructed the employee not to take the wrongful action. 

How could that be possible?  Thank the age old legal doctrine of "respondeat superior." This is a Latin phrase that means "let the master answer.”  The key issue that must be addressed when determining possible employer liability for employee action is whether the wrongful conduct is within the scope of his or her employment.  Naturally, this would include action that the employee was actually hired to do.  But, under some circumstances, it can also cover conduct that is only reasonably related to the employee’s job function, even if the employee’s conduct does not necessarily include the precise activities in his or her job description. 

Under the right circumstances, actions taken by an employee might possibly be considered within the scope of employment if:

1. They are the same type of action that the employee was hired to perform;

2. The employee takes the action in question within the geographical space and time frame normally authorized by the employer. 

3. They serve to further the employer’s business purpose.

All of that said, it is important to keep in mind that the law does not provide for an employer to be held vicariously liable for the wrongful conduct of an employee if the wrongful conduct was taken solely for the employee’s benefit.

It is important for any company having employees to implement the appropriate procedures, policies, and training to help reduce possible legal exposure for the actions of its employees.