January 20, 2015

With the explosion of technology over the past decade, the workplace has expanded from the offi ce to the home, to restaurants, and even to vehicles. The widespread use of mobile electronic devices makes it possible for some employees to perform their duties just about anywhere. With this convenience has come an expansion of employer liability for the activities of employees in the virtual workplace.

Under a legal theory called respondeat superior, employers may be held liable for damages resulting from employee actions occurring within the scope of employment. This means that if an employee is conducting business on their cell phone or other mobile device while driving, and causes an automobile accident, the employer may be held responsible for the accident.

Furthermore, if the employee is injured in the same accident, workers’ compensation liability may be an issue. Moreover, it’s well known that injured parties often seek damages from the employer instead of the employee out of the assumption that the employer has deeper pockets.

Employers may also be held liable for damages arising out of an employee’s improper or unlawful activities (such as sending sexually explicit e-mails to coworkers, theft, embezzlement, or fraud) conducted through employer provided or employer-sanctioned use of mobile devices.

Additionally, company-owned equipment may be seized in connection with a criminal investigation. In order to minimize their liability, employers should implement clear mobile device policies outlining both proper and prohibited uses. Among other things, such policies should make clear exactly who is authorized to conduct business from a virtual workplace, and at what times of day – always, during business hours only, etc.

However, implementation of such policies is often not enough to limit an employer’s liability. Employers should also exercise diligence in enforcing these policies through proper monitoring and supervision of employees.