Is an Employer Responsible for an Employee's Auto Accident While on the Job?
Under the legal theory of respondeat superior, an employer may be held vicariously liable for the negligence of employees. This is a legal theory developed through case law, rather than statutes. Willful or intentional wrongdoing on the employee's part generally falls outside the scope of employment duties. Employers are generally only liable for acts of employees that fall within the scope of their job duties. However, there is case law which allows a victim to sue employers directly for their failure to monitor their employees, or failing to check them out before hiring them, or for failing to fire them after learning of their questionable conduct.
There is nothing in federal or state law to preclude the employer from seeking compensation against the employee who caused the damages. However, under state law the employer cannot just deduct the amount from your wages without your notification and written authorization, but can unfortunately sue you if you do not make restitution or can condition employment if you do not pay.
The answer will depend in part on the employment agreement. An indemnification agreement in which one party promises to make another "whole" by paying any loss another might suffer. A waiver or release gives up a right, such as releasing one from his/her liability for harm or damage that may occur from performing under a contract, or participating in an activity.