American Law Institute Recommends Broadening Employer Liability for Employee Sexual Assault
In a significant broadening of vicarious liability for employers, the American Law Institute (ALI) recently approved a “Special Rule on Vicarious Liability for Sexual Assault” as part of the Third Restatement of Torts: Miscellaneous Provisions. This marks a notable deviation from the traditional imposition of vicarious liability on employers by imposing liability “even when the employee was not acting with a motive to serve the employer’s interest.” However, ALI has drafted this special rule with “significant guardrails” meant to temper the burden placed on employers. Quick Hits Recent case law has indicated a gradual shift toward holding employers liable for employees’ sexual misconduct. To expand this liability for employers while acknowledging the risk of creating too much liability, the rule only applies to sexual assault that meets specific criteria, including only applying in circumstances where the victim is “particularly vulnerable.” This rule only applies to employer-employee ...