Would you be liable if this happened at your business?
A recent report in the Washington Post looks into whether Mandalay Bay has any liability for the Las Vegas shooting that took place last year. The company that owns the Las Vegas hotel, MGM Resorts International, recently filed lawsuits against more than 1,000 victims who survived the shooting, arguing that it has “no liability of any kind” for the attack, and is asking the courts to protect them from legal actions filed by the victims. The company argues that they are shielded from lawsuits by the victims by a federal law known as the Support Anti-Terrorism by Fostering Technologies Act (SAFETY Act).
What is the SAFETY ACT?
Passed in response to the massive liability encountered in lawsuits stemming from September 11, 2001, as well as those lawsuits that held the Port Authority of New York and New Jersey liable for the 1993 World Trade Center attacks, the SAFETY Act was a way to encourage private companies to deploy anti-terrorism technologies without the fear of being held responsible. It limits a company’s liability in claims that follow a terror attack, so long as that company uses services certified by Homeland Security. Those services include cybersecurity technologies, crisis management systems, and venue security systems.
MGM hired Contemporary Services Corp. (CSC), to provide security for the Las Vegas event. MGM is claiming that by hiring CSC, whose services the Department of Homeland Security has approved “for protecting against and responding to acts of mass injury and destruction,” the company is absolved from responsibility in the shooting.
Will your company be protected by the SAFETY Act if violence occurs at your workplace?
Sounds great for MGM, but would your company be protected? Any company or property owner that makes, sells or otherwise deploys a product or service that can be used to combat terrorism can and should seek SAFETY Act protections. Examples of products and services that could qualify for SAFETY Act protections include physical security services, explosives detection devices, engineering services (including the design and construction of facilities), and cybersecurity products. As long as the product or service has some use against terrorism, it is eligible for SAFETY Act protections.
In the case of cybersecurity, the SAFETY Act is a particularly efficient means of minimizing or eliminating a company’s liability exposure before a cyber-attack even occurs. Companies can apply for SAFETY Act protections and can market them knowing that their liability exposure is limited.
What if your company is not protected under the SAFETY Act and violence occurs at your workplace?
Workplace violence knows no boundaries in terms of time, place and circumstances. Because this problem can surface anytime, anywhere, with little or no warning, it is one of the most constant and pressing challenges that any employer must face.
Workplace shootings are becoming more and more frequent. According to the recent statistics, 18% of violent crimes are committed in the workplace, workplace violence is the #2 cause of workplace fatalities among women workers, over 2 million employees report being victims of workplace violence each year, fewer than 30% of private employers have a workplace violence prevention program and only about 20% provided any type of work place violence prevention training. As the frequency and intensity of such attacks have increased, so has the litigation resulting from them.
While legal liability and other tangible financial costs are the most visible concerns facing a company in the wake of a workplace violence incident, the more fundamental costs to companies unprepared to detect, manage and prevent such incidents, come in the form of disrupted productivity, low employee morale and a public image that communicates a disregard for employee safety. Conversely, a company equipped to handle the broad range of workplace violence issues is more likely to not only avoid such costly incidents, but also will benefit from feelings of confidence, security and safety that characterize a successful enterprise.
What about an incident where only one or two employees are injured due to domestic violence?
You may feel that you cannot be held liable for the safety of your employees from violent domestic situations that occur in your parking lot or at your place of business. But don’t be so sure. OSHA defines workplace violence as: any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the workplace (i.e., any location where employees perform work-related activities). Violence and threats can come from current/former employees, rejected job applicants, spouses/partners, family members, clients, strangers, or other 3rd parties. Any violent incident at the workplace (even if it does not result in a death) will trigger an OSHA audit and there is a good chance they will find an OSHA offence.
Workplace violence is becoming a real threat to employers because they can be potentially liable to employees and even third parties. And even a smaller number of employers have any policy addressing domestic violence issues. Employers should know what processes and procedures they need to take when an employee shares risks concerning any domestic disputes or even protective orders.
Navigant will be hosting a series of a workplace violence program/training to employers along with other partners in an effort help our clients be better protected against this liability, including:
- Legal review and assessment of current compliance and workplace policies
- Creating workplace safety measures and administrative controls
- Physical security review and assessments
- Risk management and insurance review
- HR, management, and employee training
- Establishing a prevention and response program
Watch for more information to come or email us if you are interested and want to be sure you are registered for the series.
Should you have any questions about this article, or would like to schedule a free initial consultation, please contact Waltz, Palmer & Dawson, LLC at (847)253-8800 or contact us online.
Waltz, Palmer & Dawson, LLC is a full-service law firm with various areas of service to assist your business, including: Employment Law, Intellectual Property, Commercial Real Estate, Business Immigration, Litigation and general Business Law services. Individual services include Estate Planning, Wills and Trusts, Probate, Guardianship, Divorce and Family Law.
This article constitutes attorney advertising. The material is for informational purposes only and does not constitute legal advice.