National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

Who is typically not held liable for wrongful acts in an organization?

1. Administrator

2. Officer of the organization

3. Employed attending physician

4. Independent contractor

The correct answer is: Independent contractor

In the context of organizational liability, independent contractors are generally not held liable for wrongful acts in the same way that employees are. This is primarily because independent contractors operate as separate entities with their own operational control and decision-making authority. They are typically hired to complete specific tasks or projects, and they are usually not subject to the same level of oversight or direct management as employees, including administrators, officers, or attending physicians. The legal principle of "respondeat superior," which holds employers liable for the actions of their employees performed within the scope of their employment, does not apply to independent contractors. Since these contractors are not employees of the organization, the organization is not held responsible for their negligence or wrongful acts, assuming the contractors are truly independent and not functioning under the organization’s control. This distinction helps clarify the liability dynamics between different roles within an organization.