• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Independent Contractors: Liability Issues

by on
in Compensation and Benefits,Discrimination and Harassment,FMLA Guidelines,Human Resources

When independent contractors are acting as a company’s agents, the company is liable for their actions, according to a U.S. Supreme Court ruling in 2003.

While this is a long-held common-law principle, the court’s decision actually protects individual owners of the company from liability arising from the actions of an independent contractor.

The case involved a charge of racial discrimination by a real estate agent in violation of the Fair Housing Act. The Supreme Court ruled that the agent and company could be sued, but not the officers or owners of a company in cases when the law specifically forbids individual suits against the owners. Meyer v. Holley et al., 537 U.S. 280 (2003)

Note: The Fair Housing Act doesn’t allow individual lawsuits or authorize personal liability for employees who violate the law. Be aware, however, that supervisors and managers can be sued individually under both the Family and Medical Leave Act and the Fair Labor Standards Act.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/2114/independent-contractors-liability-issues "

Leave a Comment