I noticed an interesting article in the online version of Insurance Journal. It discussed a ruling from the South Dakota Supreme Court. And, if you are an employer, then it is a decision to keep in mind.

Case number 24943 of the South Dakota Supreme Court was decided at the end of May. The case is entitled Catherine Rose McGuire, v. Dean J. Curry, and Park Jefferson Speedway, Inc., a South Dakota Corporation, v. Christopher Eric Mollet. The quick facts are that Ms. McQuire was a passenger on Mr. Mollet’s motorcycle. Dean Cury was an employee of the Speedway and, after work, while intoxicated and speeding, he struck the motorcycle seriously injuring Ms. McQuire.

Employers should take note of the case because the Court held that the employer could be held liable for the actions of its underage employee. Why? Because the employer allowed its underage employee unsupervised access to alcohol. “After hiring Curry as a runner, the Speedway gave him a key to its alcohol storage facility,” according to the facts of the Court’s opinion. The Court held that it was not unforeseeable that “a member of the general public could be injured when the employer provided an employee, who was below the drinking age, unsupervised and unrestricted access to alcoholic beverages.”

I took note of this because retaining underage “runners” is not unusual. Your intrepid Guide was a “runner” when working through college. Here the employer had a no-drinking policy, the accident took place off of the employer’s property, and the Court found that the state statutes concerning underage consumption used the term “permitted” and it was clear that the Speedway did not permit the consumption. But, because the employer provided access and no supervision, a duty to third-parties (the public) arose.

It is a reminder to employers that a zero tolerance policy regarding alcohol and underage consumption needs to be enforced and employees monitored to make it effective.