Traditionally most employees do not consider themselves to be at risk. However, this is not necessarily the case. Although in practice most employers cover the liabilities of their employees, if there is a lawsuit, and most creditors sue the employer rather than the employee (as usually, employees don’t have the “deep pocket” as the employer) there is no certainty of this. Employees are certainly at risk.
One example we can refer to would be Houghton vs. Arns.
An employed internet website expert gave the wrong information to a company client about internet capabilities. This error cost their client a significant amount of money. The client cannot sue the company as it was already broken. So the client sued the web designer and another company employee.
The court said that the web designer and the other employee were liable for the $58,000 loss. The court ruled that the employee had been negligent and careless.
Certainly, as an employee, it is essential that you structure yourself to protect your assets. Otherwise, the court rulings like this could go after your assets and leave you bankrupt and in debt.
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