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Legal Insights for Business Owners: Managing Employee Conduct and Mitigating Liability Risks

As business owners, one of your primary responsibilities is to create a safe and productive environment for both your customers and employees. Recent legal developments, particularly the case of Hashimi v. Gap Inc., provide essential insights into managing employee conduct and mitigating potential liability risks associated with negligent hiring and supervision.


Understanding the Case

 

In Hashimi v. Gap Inc., the plaintiff alleged that an employee at an Old Navy store attempted to record her while she was changing in a fitting room. This incident led to claims of negligence against the store's parent companies, Gap, Inc. and Old Navy, focusing on negligent hiring, training, supervision, and retention of the employee involved.


Initially, the Supreme Court of Queens County denied the defendants' motion for summary judgment, allowing the claims to proceed. However, upon appeal, the court found that the defendants had no prior knowledge of any misconduct by the employee and granted summary judgment in their favor. This ruling underscores the importance of having robust policies and practices in place to manage employee conduct effectively.


Key Takeaways for Your Business

 

1.   Conduct Thorough Background Checks: While the appellate court noted that there is no legal obligation to conduct specific hiring procedures unless there are warning signs, it is still prudent to implement background checks as part of your hiring process. These checks can help identify potential red flags and protect your business from hiring individuals who may pose a risk.


2.  Establish Clear Policies and Training: Develop and enforce comprehensive policies regarding employee conduct, especially in customer-facing roles. Ensure that all employees are trained on these policies, including the appropriate use of personal devices while on duty. Regular training sessions can reinforce your expectations and reduce the likelihood of misconduct.


3.   Monitor Employee Behavior: While it is essential to trust your employees, it is also crucial to monitor their behavior, especially in sensitive areas like fitting rooms or private spaces. Implementing supervision measures can deter inappropriate conduct and demonstrate your commitment to a safe environment for customers.


4.   Document Employee Performance and Issues: Keep detailed records of employee performance, training, and any incidents of misconduct. This documentation can be invaluable in defending against claims of negligent hiring or supervision, as it demonstrates your proactive approach to managing employee behavior.


5.   Foster a Culture of Accountability: Encourage an open culture where employees feel comfortable reporting inappropriate behavior without fear of retaliation. A transparent reporting process can help you address potential issues before they escalate into legal claims.

 

Conclusion


The Hashimi v. Gap Inc. case serves as a crucial reminder of the legal responsibilities business owners have in managing their employees. By implementing thorough hiring processes, clear policies, and ongoing training, you can create a safer environment for your customers while minimizing your liability exposure.


As always, we are here to assist you in navigating these complex legal landscapes. If you have any questions or need further guidance on managing your workforce effectively, please do not hesitate to reach out.

 


Our firm has extensive experience counseling individuals, businesses, and others on statutory and regulatory requirements, as well as preparing and implementing applicable policies and agreements. If you have any questions related to this Legal Briefing, please contact any member of our firm at 585-730- 4773.



 

This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2025 Law Offices of Pullano & Farrow PLLC

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