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Unit IV
Lesson 2: Employer Liability
Introduction
Employers are ultimately responsible for the actions of their employees. If the employee is
involved in negative or criminal acts while on company time, then the company is liable for
those actions. For example, if a company selling flowers promises to deliver on time or the
flowers are free, the company is very likely to be held liable if the employee delivering the
flowers gets into an accident while driving because the employee might be seen as rushing to
fulfill the company’s policy and promise.
Employers must provide a safe work environment for all employees. Managers and supervisors
must be aware of what is happening in their departments and work space in order to ensure there
are no signs of a hostile work environment—a work environment in which one or more
employees are subjected to negative acts such as discrimination or harassment. In the past,
employees have been intimidated or bullied by another employee to the extent that the only
remedy, or so it seemed to the employee being bullied, was to resign or commit suicide (Daniel,
2004). Employers can also create a hostile work environment by cutting employees’ wages.
For example, if an employee seems to be reluctant to work on projects with another employee, a
supervisor must do everything possible to find out the reason. If it turns out that the employee is
afraid of the other employee, the supervisor, by law, is responsible for ensuring that the conflict
is resolved and take any necessary disciplinary or termination actions for the employee creating
the hostile environment.
Just as importantly, businesses have to protect their investments. They can go bankrupt if their
employees engage in criminal behavior that tarnishes their business reputation or generates huge
financial liabilities through lawsuits, legal fines, or both. The Association of Certified Fraud
Examiners (ACFE) studies fraud in companies both nationally and globally. They note that small
businesses suffer significantly when employees engage in theft (Schaefer, 2012). Obviously, the
smaller the business, the smaller their resources and reserves, therefore, making their ability to
absorb a dramatic financial loss far less likely than in the case of a major company with
significant capital reserves.
Employers communicate responsibilities and expectations to all stakeholders in their
organizations in various ways. This unit examines how employers communicate these
responsibilities by making all employees aware of culpability and liability and, in addition, by
cooperating with and stringently following various government regulations. Privacy laws and
sexual harassment are targeted by all companies and are consistently the subjects of annual
training and emphasis. Knowing about these issues allows employees to communicate effectively
in the workplace without generating unnecessary friction or lawsuits inadvertently or
intentionally.
Government Regulations
As employers carry out their responsibilities to employees, most employers attempt to
communicate sincere concern for their employees and demonstrate a strong desire to ensure all
employees of the company are being treated appropriately. Creating a safe and positive work
environment is not only good for business but, many times, is supported by strong government
regulation.
Workers’ Compensation Insurance
If an employee is injured on the job, employers must provide compensation in the form of
insurance. The insurance usually covers all medical expenses incurred because of the injury. An
injured employee is also entitled to receive monetary assistance in place of any loss of salary
while recovering from the injury. By providing this insurance and communicating its availability
to employees, employers communicate their concern for the safety of employees, their financial
stability during a recovery period, and simultaneously minimize legal action by an employee
who might otherwise sue the employer to recover salary lost during a recovery period or, in the
worst cases, for a permanent loss due to more serious injury and perhaps future incapacity and an
inability to continue working.
Employers in many states are required to carry workers’ compensation insurance for employees.
Very large corporations sometimes provide their own insurance. However, companies with fewer
than four employees are exempt.
Unemployment Benefits
An employee can collect unemployment benefits—monetary benefits made to employees by the
government for a certain period when they are unemployed—if an employee is laid off through
no fault of his or her own. Examples might include if the company goes out of business or there
might not be enough work for everyone. However, these benefits generally are for a
predetermined number of days. In this program, employees are expected to be available for work
every week and to keep applying for jobs, making in-person contact in addition to any telephone
calls or resumes sent out. The specific rules for these programs are made known to employees
upon application for their benefits.
Employees who are fired might even be eligible for unemployment benefits depending on the
reason for the termination. Some of the reasons why unemployment benefits might be denied
include if you are fired for refusing to take a drug test or an alcohol test, for assaulting a
coworker, stealing from coworkers, or for deliberately putting others at risk by ignoring safety
policies (Guerin, n.d.).
Understanding Privacy Laws
Employees are entitled to some particular aspects of privacy, such as when speaking with a
supervisor about an evaluation. However, if the employee uses the business’s computer for
personal reasons, then there is no protection for privacy rights. For example, if an employee were
to write a personal message to a family member using the company computer, the message
automatically becomes company property. E-mail messages can and often have been used
against employees in legal cases.
Employees may believe that their medical history is private, but some employers require
employees to take drug screening tests. In some states, the tests are restricted, and employers can
only require employees to take the tests under certain circumstances. For example, a potential
employee must be permitted to know in advance if drug testing will be part of the hiring process.
Employers must ensure that all drug screening tests take place at a state-certified lab.
Employers can also request an employee to take a drug test if the employee goes to work and is
obviously under the influence of drugs.
Understanding employees’ rights to privacy and when they forfeit those rights will help all
employees communicate more effectively with their supervisors and coworkers.
Sexual Harassment
Unwanted sexual behavior is not tolerated in the workplace. Business owners provide training
for employees in order to avoid costly lawsuits. Any employee can file a lawsuit against both the
perpetrator and the company if he or she is sexually harassed at work.
Sexual harassment can be verbal or nonverbal. An example of verbal harassment occurs when an
employee is told about sexually explicit behaviors even after he or she has asked the other person
not to talk about those things. In an example of nonverbal harassment, an employee may touch
another employee inappropriately even though he or she has been asked on at least one occasion
to refrain from doing so. Note that both of these situations are qualified by the employee on the
receiving end requesting not to be told about the sexually explicit behavior on the one hand and
not to be touched on the other. Clear and direct communication to the perpetrator is an important
part of supporting sexual harassment laws.
Federal laws prohibit people from making unwelcome sexual advances or asking for sexual
favors. When people ask for a favor, it is usually termed “quid pro quo,” which means “this for
that.” If the request is sexual in nature, the request violates federal law and jeopardizes both the
job of the perpetrator and the stability of the company. For this reason, most companies have
zero toleration for sexual harassment.
Employees must communicate with their supervisor if they believe that they are being harassed
sexually. Employees should speak with their supervisor privately to explain the situation in detail
and ask that action be taken with their HR department before taking legal action against the
person and the organization. Call or go to the HR department, and speak with one of the HR staff
about the situation. Explain that previous discussions with the supervisor have been
unsuccessful, and then explain the situation in detail and the action that needs to be taken in
order to avoid litigation. By no means tolerate sexual harassment from anyone. Keep going
higher to seek redress, even if that means going to an attorney.
Sometimes closely aligned with sexual harassment is the use of inclusive language. What is
meant by the term is the effort to use a language free from any words or phrases—even tones—
that indicate prejudice, stereotyping, or discrimination in any form. While this prospect sounds
easy in practice, that is certainly not the case. It is very easy to use a word or phrase that has
implications for any number of groups, races, or religions. Inclusive gender language, for
example, is an important change that has occurred and continues to improve in communication.
When speaking of a person in a general sense, without knowing his or her gender, we write “him
or her" rather than the previously acceptable “him.”
Another simple example is the adjective spry. Some of the definitions of the word include lively,
agile, nimble, peppy, animated, and frisky. One of the issues with the term might be seen in some
dictionaries which include the phrase “especially of an old person.” In other words, no one is
likely to say an active five-year-old is spry. The tone that is associated with the word means
something like, “Wow, I am surprised at your age that you can walk and move.” Therefore, the
term’s use can be very offensive to older people who might take it as condescension, even as
pity. We know language is a powerful tool, and companies need to be certain that they enlist the
powers of language in their favor and not unconsciously alienate any employees or potential
customers by a careless and frivolous use of language.
Check for Understanding
(Answer Key found below Review)
1. Employees are responsible for providing and maintaining a safe work environment. a. True b. False
2. In most cases, an employer is responsible for having workers’ compensation insurance for any employee injured on the job.
a. True b. False
3. An employee who is fired for any violation of a company’s code of ethics is still eligible for unemployment benefits.
a. True b. False
4. An employer has the right to drug test any employee at any time and process the drug test on site.
a. True b. False
5. The perpetrator, not the company, is responsible if sexual harassment is reported but allowed to continue.
a. True b. False
Review
1. If a company is going out of business and you are out of a job, you can claim unemployment benefits from the government.
2. If you utilize company property, such as computers, for personal use, you have no right to privacy.
3. When a supervisor does not respond to your report of sexual misconduct, you can communicate with the HR department.
Answer Key
1. False - Employees are not responsible for the work environment, but the employer is responsible by very strict laws.
2. True - Unless the company has fewer than four employees, federal law requires companies to maintain worker’s compensation insurance for its employees.
3. False - If an employee is fired for any violation of the company’s code of conduct, the employee is not eligible for unemployment benefits.
4. False - False on two accounts. The first is that unless the employee was made aware that random drug testing was conditional to employment, the test cannot be given. Second, all
drug tests must be processed only by state-certified labs, never on the job site.
5. False - More so than the perpetrator, a company that has a report of sexual harassment that is not acted on is opening itself to potentially very costly lawsuits.
References
Daniel, B. (2004). Workplace bullying: A communication perspective (Unpublished doctoral
dissertation). Tallahassee, FL: Florida State University.
Guerin, L. (n.d.). Unemployment benefits: What if you’re fired? Retrieved from
http://www.nolo.com/legal-encyclopedia/unemployment-benefits-when-fired-32449.html
Schaefer, P. (2012). Are employees stealing from you? Tips to prevent employee theft. Retrieved
from http://www.businessknowhow.com/manage/employee-theft.htm