Workplace Accidents: Legal Implications and Employer Responsibilities

Businesses all over the country experience workplace accidents every single day.

Here’s the problem: Most business owners are unaware of their legal obligations when these accidents occur, and this ignorance can lead to expensive fines, lawsuits and even criminal prosecution.

The good news is that by knowing about employer liability and taking preventive measures, you can protect your employees and your business from serious repercussions.

Learn more about employer liability for workplace injuries, your legal responsibilities when an accident occurs, and how to minimize your liability below.

Table of Contents

1. What Is Employer Liability for Workplace Accidents?
2. The Legal Doctrine Behind Employer Liability
3. Types of Workplace Accidents That Create Liability
4. What Are Your Legal Responsibilities as an Employer?
5. Beyond Workers’ Comp: When Third-Party Liability Applies
6. How to Protect Your Business From Liability
7. The Financial Cost of Neglecting Safety
8. The Bottom Line

What Is Employer Liability for Workplace Accidents?

Employer liability refers to the legal obligations business owners have to provide safe working conditions for employees.

When you hire employees, you take on a legal duty of care. You are required to provide a workplace free from known hazards that can cause death or serious physical harm.

If an accident occurs as a result of you not meeting your duty of care, you can be held liable.

Here are a few statistics to give you an idea of the scale of the problem. According to the Bureau of Labor Statistics, there were 5,283 fatal work injuries in the United States in 2023. That’s one worker dying from a work-related injury every 99 minutes.

But that’s only the beginning. Private employers reported 2.8 million non-fatal workplace injuries and illnesses in just one year. Accidents can cause employees to miss work, time off work can cost businesses money and failure to report accidents and manage risks can create serious legal headaches for employers.

The Legal Doctrine Behind Employer Liability

Here’s how this works. There’s a legal principle called respondeat superior (let the superior answer).

This doctrine holds employers responsible for their employees’ actions while they are acting within the scope of their employment. Even if you aren’t directly involved in causing an accident or injury at work, you can still be held liable as an employer if it happened during the course of employment.

For example, if your delivery driver runs a red light while making a delivery for work and causes an accident, your business can be held responsible. The same is true for on-the-job injuries caused by unsafe conditions, lack of training or failure to provide safety equipment.

Types of Workplace Accidents That Create Liability

Not all workplace accidents are the same. Different industries have different risks, and certain types of accidents trigger specific legal responsibilities.

Construction Accidents

Construction is one of the most dangerous industries in the U.S. The construction industry alone accounts for 20% of worker deaths in private industries, with falls, being struck by objects, electrocution and being caught in or between equipment being the top causes of death.

Construction accidents involving scaffolding collapses, falls from heights or equipment failures are typically more specialized and often require expert legal representation. A New York scaffold accident attorney can provide essential guidance on the complex regulations surrounding these high-risk work environments.

Manufacturing Injuries

Factories, manufacturing facilities and industrial plants have heavy machinery, moving parts and sometimes dangerous chemicals. 15% of all workplace injuries in the U.S. happen in manufacturing environments.

These accidents often result from inadequate machine guarding, failure to use lockout/tagout procedures, poor equipment maintenance and lack of proper training.

Office and Service Industry Accidents

Just because you aren’t working in a high-risk industry doesn’t mean you’re safe from liability. Slip and fall accidents, ergonomic injuries and even workplace violence can all create potential liability for office and service industry employers.

What Are Your Legal Responsibilities as an Employer?

Here’s the thing. As an employer, your responsibilities go beyond just having insurance.

Immediate Response Requirements

If an accident happens in your workplace, you must take immediate action. This includes calling emergency services, investigating the facts and documenting the incident on a First Report of Injury form.

OSHA Compliance

The Occupational Safety and Health Administration (OSHA) is the federal agency that sets safety and health regulations in the workplace. OSHA compliance is non-negotiable. You must comply with these standards to reduce your risk of workplace accidents.

OSHA resources are limited. With about 1,850 inspectors looking after 130 million workers at more than 8 million worksites, chances are good you will have an inspection some day, whether you know it or not.

The average OSHA inspector looks at less than 150 businesses each year. That means you could be next.

OSHA penalty amounts are going up as well. The average penalty for a serious violation in 2023 was $4,083 for federal OSHA, with willful violations facing penalties of $138,793.

Workers’ Compensation Insurance

Carrying workers’ compensation insurance is a requirement in most states. This insurance provides medical expenses, lost wages and rehabilitation costs for injured employees and also protects employers from most employee lawsuits.

Workers’ compensation is a tradeoff. Employees get these benefits regardless of fault and employers are generally protected from being sued by injured employees.

Beyond Workers’ Comp: When Third-Party Liability Applies

Here’s a little-known fact: workers’ comp isn’t always the end of the story.

Third-party liability claims can come into play when an employee is injured on the job by someone who isn’t you or one of your other employees. Common examples of third-party accidents include defective equipment caused by manufacturers, negligence by contractors or subcontractors or vehicle accidents with other drivers.

In these cases, injured employees can file personal injury claims against third parties in addition to receiving workers’ comp benefits.

How to Protect Your Business From Liability

Don’t panic. It’s actually easier than you think to reduce your risk.

Implement Strong Safety Programs

Your best defense against liability for workplace accidents is prevention. Create and maintain comprehensive safety programs with regular risk assessments, clear protocols and proper training for all employees.

Document Everything

Keep detailed records of all safety measures, training sessions and incident reports. Documentation is critical if you end up in an OSHA investigation or in court.

Provide Adequate Training

Workplace accidents are often the result of employees who weren’t trained properly for their job. Provide comprehensive training to every worker on job-specific safety procedures, proper equipment use and emergency response.

Address Hazards Promptly

If you know about a workplace hazard, you have an obligation to address it immediately. Failure to repair a problem or delay in responding to safety concerns can turn a small risk into big liability.

The Financial Cost of Neglecting Safety

Here are some statistics to show you what’s at stake: workplace accidents can be devastating not only for your employees but for your business as well.

If you violate safety regulations, you could be on the hook for tens of thousands of dollars in penalties. But that’s just the beginning. You’ll also be paying increased insurance premiums, legal fees, lost productivity and business reputation damage.

The median penalty for an employer who kills a worker? $16,131 for federal OSHA. You might be thinking that doesn’t seem like much but keep in mind this is often paired with other legal actions as well as civil lawsuits that can cost a business millions.

The Bottom Line

If you own a business, it’s crucial that you fully understand your liability for workplace accidents.

Maintaining safe working conditions, complying with OSHA regulations and responding appropriately when accidents do occur are not only the right thing to do for your employees, they are also in the best interest of your business.

It’s not just about avoiding legal consequences and financial penalties. It’s about taking care of the people who help you grow your business every day.

The investment you make in workplace safety now will pay dividends down the road. Not only that, you are doing your part to ensure your employees can return home safely to their families at the end of every workday.

Don’t wait until an accident occurs to take action. Review your safety protocols, update your training programs and make workplace safety a core part of your business culture.