Posted on April 25th, 2019
Below is a complete transcript of this video.
What’s up fellow entrepreneurs? This is John Fagerholm coming to you from METAL LAW GROUP. Today, I wanted to talk about absentee business owners.
There are tons of businesses being operated in California where the owner isn’t there day-to-day and has a supervisor or a manager running it.
What you should know as an absentee business owner is that you are strictly liable for the acts of the business manager, I’m sorry of the supervisor or manager.
So for example, let’s say that your supervisor starts harassing somebody. Sexual harassment, whatever.
Any type of harassment. Typically, in a situation with any type of harassment, it has to have been reported, right?
So if it’s one … it has to be reported to be actionable. Like one employee at the same level harassing another employee.
However, with supervisors, that’s not even the case. The person claiming to be harassed does not ever have reported it, said anything about it, anything else.
And can even report it after … or they can sue about it even after they leave.
So that’s the strict liability component with a supervisor and a manager. Even an absentee business owner should take some sort of precautions with who they’re hiring to do their business, checking up on them, seeing what’s going on.
Because even if you were never there, never had contact with the employees, nothing else, you could be held responsible for it.
So that’s all for today.
Thanks a lot, see you next time.
