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SENATE BILL NO. 1087

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Daily Data Tracking History

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S1087................................................by JUDICIARY AND RULES
EMPLOYER - LIABILITY - Adds to existing law to limit the liability of an
employer for the tortious acts of an employee.

02/02    Senate intro - 1st rdg - to printing
02/03    Rpt prt - to Jud
02/18    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/25    3rd rdg - PASSED - 32-2-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
      Thorne, Twiggs, Wheeler
      NAYS--Stegner, Whitworth
      Absent and excused--Parry
    Floor Sponsor - Bunderson
    Title apvd - to House
02/26    House intro - 1st rdg - to Jud

Bill Text

S1087


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1087

                             BY JUDICIARY AND RULES COMMITTEE

 1                                        AN ACT
 2    RELATING TO EMPLOYER LIABILITY FOR ACTS OF AN EMPLOYEE; AMENDING  CHAPTER  14,
 3        TITLE  44,  IDAHO  CODE,  BY  THE ADDITION OF A NEW SECTION 44-1408, IDAHO
 4        CODE, TO LIMIT THE LIABILITY OF AN EMPLOYER FOR THE TORTIOUS  ACTS  OF  AN
 5        EMPLOYEE.

 6    Be It Enacted by the Legislature of the State of Idaho:

 7        SECTION  1.  That  Chapter  14,  Title 44, Idaho Code, be, and the same is
 8    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
 9    known and designated as Section 44-1408, Idaho Code, and to read as follows:

10        44-1408.  EMPLOYER  LIABILITY FOR EMPLOYEE TORTS. (1) No employer shall be
11    liable for the tortious acts of an employee which:
12        (a)  Are outside the course and scope of the employee's employment; or
13        (b)  Occur after the termination of the employee's employment.
14        (2)  The foregoing limitations on an employer's liability shall not  apply
15    if  it  is  shown by clear and convincing evidence that the employer's actions
16    were willful, wanton, and outrageous, or intentionally tortious.
17        (3)  Nothing in this section shall be  construed  to  limit  any  person's
18    rights  under  any  other  statute  including, but not limited to, chapter 59,
19    title 67, Idaho Code, and title 72, Idaho Code.

Statement of Purpose / Fiscal Impact

                        STATEMENT OF PURPOSE

                             RS 08623C1

A 1998 Idaho Supreme Court decision established a new liability
for Idaho employers that may cause them to be held responsible
for the criminal actions of a former employee - unless the
employer can prove they conducted an extensive reference check
prior to hiring that employee. This heightened standard for    _
hiring practices established by the Court's decision will be
difficult, if not impossible, for employers to meet.

Because of today's legal environment and the fear of being sued,
many employers limit references on former employees - such as
providing only dates of employment, job titles, salary, etc.
Unfortunately, future employers who are attempting to avoid the
new liability created by the Court's decision will be forced to
seek much more detailed job references on applicants -
significantly slowing the entire hiring process. Employers
seeking this in-depth reference information will face difficult
obstacles that will frustrate timely employment decisions.

The Court's decision also will hurt employees. Applicants whose
past employers refuse to give detailed reference information may
not even be considered for employment, solely for that reason.
In addition, if an employee's reference implies even a minor
problem, they may be excluded from consideration as the future
employer tries to avoid the expanded new liability stemming from
the Court's decision.

This legislation will limit the substantial negative effects of
the Supreme Court decision by qualifying and clarifying the
extent of employer liability for hiring practices. This will
remove the decision's significant impediments to the employment
process, which are damaging to employers, to employees and to
the Idaho economy.

                           FISCAL IMPACT

There will be no fiscal impact to the General Fund.

CONTACT 
Name :        Dawn Justice, VP Human Resources
Organization: Idaho Association of Commerce and Industry
Phone:        343-1849

Statement of Purpose/Fiscal Impact

                                                              S 1087