Usually, injuries take place in a place of business, or the accident occurs due to the negligence of an employee in any other place. California law gives the injured person the right to sue and recover damages from the employer who is liable for the negligent hiring or supervision of the employee.
California Civil Jury Instruction (CACI) 426 clearly explains the elements that must be proven for convicting the employer in negligent hiring and/or supervising the employee:
According to California law, employee is any person subject to the direct control of an employer. Such people consist not only of salaried employees also of temporary workers, per diem overflow workers, independent contractors, agents, and third parties such as security guards.
For being liable for negligent hiring, supervision, or retention the employer should have known or been on notice that the employee was incompetent or unable to perform the work.
According to California Civil Code Section 1714, every person is responsible for injuries caused by their want of ordinary care or skill in the management of their person or property. But this rule applies only in case the employee was acting within the scope of employment. So the employer is liable in case the employee was doing his job, carrying out company business, or otherwise acting on the employer’s behalf when the accident happened.
An employer cannot be liable in case the employee committed intentionally wrongful acts. But if the employer knew or reasonably should have known about the employee’s intention to engage in an illegal act, the employer can still be liable for negligent hiring or supervision.
Employers can’t be liable for the negligent or intentional actions of the employee which fall outside of the scope and course of the employment, because the consequences are unrelated to the employer.
Here are a few actions the employer can undertake to avoid claims of negligent hiring or retention
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