When Companies Are Liable for Employee Sexual Abuse

When Companies Are Liable for Employee Sexual Abuse

As an employee, you have certain expectations of your company and coworkers, chief among them providing a safe work environment free from harm and misconduct. However, companies do not always meet these basic obligations, as evidenced by the prevalence of sexual harassment and abuse in the workplace. When an employee perpetrates acts of sexual violence against coworkers or customers, victims are often left wondering whether the company itself can or should be held legally responsible. The answer is complex but in many cases, yes, employers can face liability for the egregious actions of employees. An Austin sexual abuse lawyer will be able to walk you through your options. Understanding when and how companies may be found accountable for employee sexual abuse is critical for victims seeking justice and companies aiming to avoid legal trouble.

Vicarious Liability: When Employers Are Legally Responsible

Under the legal theory of vicarious liability, employers can be held legally responsible for the acts of their employees in certain circumstances. If an employee sexually assaults or harasses someone while acting within the scope of their employment, the employer may face liability.

There are two types of vicarious liability that apply in these situations:

  1. Respondeat superior: This means that employers are liable for torts (civil wrongs) committed by employees acting within the scope of their employment. If an employee uses their position or the employer’s premises to carry out harassment or abuse, the employer could be found liable.
  2. Negligent hiring/retention: Employers have a duty to exercise reasonable care in hiring and supervising employees. If the employer knew or should have known about an employee’s dangerous propensities or tendencies to harass, and failed to take action, the employer could face liability for negligent hiring or retention. For example, if the employer received previous complaints about the employee but did nothing, or failed to conduct a thorough background check.

To avoid vicarious liability and negligent hiring/retention claims, employers should implement clear anti-harassment and abuse policies, provide regular training, and conduct background checks. They must take all complaints seriously, investigate them promptly and thoroughly, and take appropriate corrective action. When employers fail in these duties, they open themselves up to legal liability for the harm caused by abusive employees. By putting proper safeguards and oversight in place, companies can limit their exposure while also ensuring a safe environment for all.

Negligent Hiring and Retention of Dangerous Employees

As an employer, you have a legal duty to provide a safe work environment for your employees. This includes taking reasonable care in hiring and supervising staff to prevent foreseeable harm. If an employee engages in sexual abuse, the company can potentially face liability for negligent hiring or retention of that employee.

Negligent Hiring of Dangerous Employees

If a company fails to exercise reasonable care in hiring and ends up employing someone who is incompetent or dangerous, it may be liable for resulting harm to others. During the hiring process, employers should conduct thorough background checks, verify references, and evaluate if the candidate is fit for the particular job and work environment. If an employer ignores obvious warning signs that a potential hire could be prone to harmful behavior, it risks being found negligent in hiring.

Failure to Properly Supervise or Retain Dangerous Employees

Similarly, if an employer becomes aware that an employee poses a threat but fails to take corrective action, it can be liable for negligent retention. Warning signs may include reports of inappropriate behavior, policy violations, or performance issues related to the employee’s role and responsibilities. When such issues arise, employers must take swift action through re-training, disciplinary measures, reassignment, or termination if necessary to ensure the safety of other staff and constituents.

In summary, companies have an obligation to avoid hiring or keeping on employees who could pose a foreseeable threat of harm. By exercising reasonable care and judgment in hiring and supervision, taking prompt corrective action, and documenting these efforts, companies can limit liability risk from employee misconduct. Overall, preventing sexual abuse and maintaining a safe environment should be top priorities for any organization.

Failure to Properly Train and Supervise Employees

Companies can be held legally liable for the harmful actions of their employees in certain circumstances. One such situation is when there is a failure to properly train and supervise employees. If a company does not take reasonable care to prevent employee misconduct that could foreseeably harm others, the company may face legal consequences.

Lack of Adequate Training

If a company fails to train employees on critical policies like anti-harassment, anti-discrimination, and workplace ethics, and an employee then engages in abusive behavior, the company can potentially be found negligent. Proper training helps ensure employees understand behavioral expectations and the consequences of policy violations. Without this, employees may not fully grasp the seriousness of certain actions like sexual harassment and assault.

Insufficient Supervision

Inadequate supervision of employees can also lead to legal liability for a company if it enables improper behavior. If managers or supervisors do not properly oversee employees and ensure compliance with policies, inappropriate conduct may go unnoticed or unaddressed. Lack of supervision suggests the company is not taking sufficient action to prevent foreseeable harm, especially if the employee in question has a known history of policy violations or abusive behavior.

Past Issues Were Ignored

If a company has previously ignored or failed to properly investigate reports of an employee’s inappropriate behavior, it indicates a disregard for the wellbeing of others that can establish legal liability. By turning a blind eye to past issues, the company has missed opportunities to discipline the employee or take corrective action to prevent future harm.

In summary, companies are obligated to take reasonable care in training, supervising, and overseeing employees. Failure to do so, especially when it enables abusive behavior, may result in legal consequences under premises liability or negligent retention laws. By making employee conduct a priority, companies can avoid liability and promote a safe environment for all.

Ignoring or Covering Up Previous Complaints of Sexual Misconduct

Companies can be held liable for employees’ acts of sexual abuse and harassment under certain circumstances. If a company ignores or covers up previous complaints about an employee’s inappropriate sexual behavior, they may face legal consequences.

Ignoring Previous Complaints

If a company receives complaints that an employee has engaged in sexual misconduct, they have a responsibility to properly investigate and address the situation. If they fail to take action, they can be considered negligent in preventing future abuse. For example, if multiple people report that a manager makes unwanted sexual advances and inappropriate comments, but the company does not discipline the manager or enforce corrective action, they may be liable if that manager then sexually assaults an employee.

The company had knowledge that the manager posed a threat, but failed to mitigate the risk. Their inaction enabled the abuse to occur, making them potentially negligent. Companies should have clear policies and procedures in place for addressing complaints of inappropriate workplace behavior, including sexual harassment, and follow through with appropriate action. Failing to do so can establish a pattern of negligence that contributes to a hostile work environment.

Covering Up Complaints

In some cases, companies may actively work to cover up complaints about an employee’s sexual misconduct to protect the company’s reputation or the employee in question. For example, a company may pressure victims into signing nondisclosure agreements, fail to document or properly investigate claims, or retaliate against victims for reporting abuse. Such actions demonstrate a willful disregard for employees’ safety and well-being.

If it is found that a company conspired to hide an employee’s behavior to avoid liability, victims may be able to pursue legal claims against the company for enabling abuse. No organization is exempt from responsibility in these situations. Companies of all sizes in every industry must make employees’ safety a priority and work to prevent workplace harassment. Failing to do so can cause irreparable harm.

Allowing a Hostile Work Environment That Enables Sexual Abuse

If a company fails to take reasonable care to prevent and correct sexually harassing behavior in the workplace, it can be held liable for the harassing conduct of its employees. Allowing a hostile work environment that enables sexual abuse to flourish can make a company legally responsible.

According to the U.S. Equal Employment Opportunity Commission (EEOC), unlawful harassment creates a hostile work environment when it is "severe or pervasive enough to create a work environment that a reasonable person would consider intimidating, hostile, or abusive." When coworkers or supervisors engage in persistent inappropriate sexual comments, jokes, groping, or other offensive behavior towards an employee, it can constitute a hostile work environment.

If a company knows or should have known about the unlawful harassment but fails to take prompt and effective action, it can be held liable for the employees' actions. Management's failure to properly investigate complaints of sexual harassment, take disciplinary action against perpetrators, or make policy changes to prevent further abuse may demonstrate negligence. The company's duty to exercise reasonable care in preventing and remedying harassment applies even if management did not have actual knowledge of the harassment.

Courts may also find employers liable if the harassment resulted in a "tangible employment action" against the victim, such as termination, demotion, or pay cut. When a supervisor's harassment culminates in a tangible employment action, the employer is strictly liable. However, employers may avoid liability if they can show:

• They exercised reasonable care to prevent and promptly correct any harassing behavior.

• The employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer.

In summary, companies have an obligation to take proactive steps to prevent sexual harassment and hostile work environments. When management fails in this duty, their negligence and disregard for employee well-being can make them legally liable for the abuse. Creating clear anti-harassment policies, properly investigating complaints, and taking swift corrective action are key to avoiding liability. Contact Fletcher Law for help getting your sexual abuse case started.