If an independent contractor that I lsease space to sexually harrasses the female clientele, can I be named in a lawsuit if one of these women pursues a lawsuit against him?
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If an independent contractor that I lsease space to sexually harrasses the female clientele, can I be named in a lawsuit if one of these women pursues a lawsuit against him?
I own a small skin care business and have independent contractors who rent space from me. I have no employees; I am incorporated as a Sub-S. I’ve just had a couple of complaints brought to my attention by some female clients who’ve had services (permanent cosmetics) performed by a male. Both said there was inappropriate comments made and touching of their breasts. I am trying to collect information but some do not want to come forward. My plan is to let him go but all I have is hearsay other than one woman who posted a very negative comment on my buiness Facebook page.
Asked on December 6, 2012 under Business Law, Arkansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If the independent contractor truly is an independent contractor, you should not be liable for his sexual harassment. The problem is, if you exercise any degree of control over him, a court could conclude that, for this purpose, he is not an independent contractor, but rather you are his employer, and therefore hold you liable. In salon, etc., type businesses, the lines between independent contractor and employee often blur; you do face some liability risk.
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