Business Liability: When Employees Break The Law

Businesses can be held liable for harm caused by their employees, including injuries inflicted on coworkers, customers, or strangers. In some cases, businesses may be penalized for misclassifying their workers as independent contractors rather than employees. Employees are generally protected by whistleblower laws and cannot be forced to break the law. However, they may face challenges when reporting unlawful activities, as employers may try to protect their interests and avoid negative consequences. Understanding labour laws and seeking legal advice are crucial for both employers and employees to navigate these complex situations effectively.

Can a business break the law because of an employee?

Employees cannot be forced to break the law

Employees have the right to protect themselves against corruption or safety violations at work. They cannot be forced to break the law, as whistleblower statutes offer employees protection. Whistleblower laws protect the public at large and help in regulating industries such as aviation, trucking, and finance. They also protect the environment and the economy. Employees are encouraged to inform employers if a supervisor or employee is involved in unlawful activities. Employees are protected from being terminated if they report unethical activities or choose to take part in a related investigation.

If an employee is terminated for refusing to obey an employer's illegal orders, they may have grounds for a wrongful termination lawsuit. Under this legal theory, the employee alleges that the firing is against public policy, meaning that it is bad for society at large to allow an unjust outcome that sets a bad precedent for future cases. In accordance with this public policy argument, society encourages honest employees to come forward to report fraud, safety issues, or other misconduct to protect the greater good.

There are several methods an employee can use if they are asked to break the law. An employee might send their boss an email to restate the request and wait for a response. If the boss does not back down, the employee should record, in writing, what the boss requested and reply with their reason for refusing to comply. An employee may also speak to their boss's supervisor about the issue for feedback. It is helpful to get the request in writing as evidence. Speaking to the manager in the company's HR department may help as well. An employee may also respond by saying "no" while explaining the reasons for refusing to go ahead with the proposed activity. An employee can also refuse the request and report it to an employee who has the authority to investigate, discover, or correct the noncompliance. Any move that is made should also involve legal representation. Employees are protected when it comes to reporting unlawful workday activities.

Additionally, it is important to note that whistleblower laws and claims against retaliation only apply if the employee was complaining about something substantial, such as fraud or corruption. Simply having an unpleasant boss is not sufficient to trigger legal protections. If an employee feels their rights are being violated, they can reach out to employment lawyers who can help them better understand what is acceptable and not acceptable in the workplace. They may also want to have a lawyer review documents regarding their employment before signing them.

Businesses may be liable for employee actions

Additionally, businesses may be held liable for the actions of their employees if those actions are deemed to be a risk of the business. For example, if a restaurant promises delivery within 30 minutes and a delivery driver, rushing to meet the deadline, hits a pedestrian, the restaurant will likely be held responsible. On the other hand, if an employee acts independently or out of personal motives, the employer may not be liable. For instance, if a salesperson uses a company car for personal errands after work and gets into an accident, the company is unlikely to be held responsible.

It's important to note that whistleblower laws protect employees who refuse to commit unlawful acts or report unlawful activities within their organizations. These laws vary by state and industry but generally shield employees from retaliation, such as wrongful termination, for their actions. Employees have the right to protect themselves against corruption or safety violations and can seek legal advice or report concerns to appropriate authorities.

Furthermore, businesses may be liable for unlawful actions taken by their employees toward other employees or customers. For example, discrimination, failure to pay overtime or minimum wage, forbidding discussion of salary, and ignoring exemptions to vaccination mandates are all unlawful actions that a business may commit or allow due to managerial decisions. In such cases, employees may have grounds for legal action or complaints to the appropriate agencies.

Employers can break the law

Additionally, employers can break the law by violating various workplace laws and employee rights. This includes issues such as wage protections, overtime pay, minimum wage, and employee classification. Employers may also discriminate against workers, allow a hostile workplace, or ignore vaccination mandates. In these cases, employees can take steps such as contacting their supervisor, human resources, or a private employment attorney to address the issue.

Furthermore, employers may be held legally responsible for harm caused by their employees under certain circumstances. For example, if an employee injures a customer or a stranger while acting within the scope of their employment, the employer may be liable for the victim's injuries. This is known as the legal theory of respondeat superior.

It is important to note that laws and protections may vary by state and industry, and employees should seek specific legal advice if they believe their rights have been violated.

Employees can report unlawful activities

Employees can and should report unlawful activities in the workplace. If an employee suspects their employer of conducting illegal or unethical activity, they should first speak with their employer to get their perspective and bring clarity to the situation. If the employer is aware of their illegal activity and continues to engage in it, the employee can report them to the human resources department or refer to their employee handbook to understand the reporting procedures. Employees can also report their employer to the Labor Commissioner's Office, the state agency responsible for investigating labor law violations.

Employees are protected by law when it comes to reporting unlawful activities. Whistleblower laws and claims against retaliation only apply if the employee was reporting something substantial, such as fraud or corruption. Employees are protected from being terminated if they report unethical activities or choose to take part in a related investigation. If an employee is terminated for reporting unlawful activities, they can file a wrongful termination lawsuit.

In addition to reporting unlawful activities to the human resources department or Labor Commissioner's Office, employees can also reach out to employment lawyers who can help them understand their rights and what is acceptable and unacceptable in the workplace. Employees can also file an administrative complaint with the appropriate agency, such as the EEOC for complaints about discrimination or the National Labor Relations Board for alleged violations of the NLRA. Wage issues may be addressed by state labor offices. Most of these agencies have online reporting options, but it's important to note that it can take a significant amount of time for a matter to be heard, depending on the agency.

Employees have the right to work in a safe environment and can report workplace safety issues to OSHA or the government agency that regulates their industry. They can also report health and safety complaints related to COVID-19 workplace hazards to Cal/OSHA.

Businesses can be liable for safety issues

Businesses can be held liable for safety issues and injuries that occur in the workplace. Employers have a legal duty to identify and address hazardous conditions, provide appropriate training, and enforce safety regulations. This includes adhering to the Occupational Safety and Health Administration (OSHA) guidelines and other safety regulations to ensure a safe working environment for their employees. Negligence on the part of the employer, such as failing to address hazardous conditions or provide necessary safety equipment, can result in penalties, lawsuits, and other legal consequences.

Employers may be forced to suspend operations until hazardous conditions are resolved. They can be held accountable for workplace injuries if they were negligent or if the injury occurred while the employee was performing their job duties. Even if the employer was not careless, they may still be liable for injuries that arise during the usual course of business. For example, if an employee is injured due to unsafe working conditions, such as exposure to powerful pesticides, the employer may be held responsible for any resulting illnesses or injuries.

Additionally, employers can be liable for negligent hiring or retaining hazardous workers. Running background checks, verifying information, and checking for criminal convictions can help mitigate this risk. Employers should also be aware that they may be held responsible for the actions of their employees, especially if the job involves working with the public.

To foster a safer work environment and reduce the risk of accidents and injuries, employers are encouraged to implement safety and health programs. These programs take a proactive approach to managing workplace safety and health, focusing on achieving goals, monitoring performance, and evaluating outcomes. By following recommended practices, employers can prevent workplace injuries, illnesses, and deaths, as well as the associated financial hardships.

Frequently asked questions