Labor Law -- 2015

Walgreen Co. v. Hinchy   (Indiana Supreme Court)

Indiana court allows for vicarious employer liability for personal employee misconduct

On February 18, 2015 the NAM filed an amicus brief with the Indiana Supreme Court in Hinchy v. Walgreen Co. An appeals court in Indiana adopted a “strict liability” respondeat superior theory, holding businesses liable for the actions of their employees, regardless of whether the employee was acting within what is traditionally considered the “scope of employment,” and regardless of whether the employee had been trained not to engage in the behavior.

The NAM brief sought clarification from the Indiana Supreme Court on when an employer can be held liable for the unlawful actions of an employee, where the employee knowingly violated company policy. Although this particular case arose in the health care context, and could have very significant implications for health care companies, the issue is of interest to all Indiana employers.

Unfortunately, the Court declined to take the case.

Related Documents:
NAM brief  (February 18, 2015)


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