Abstract: This paper discuses the legal effects of the employee’s improper acts. One of the most fundamental impacts is that employers can be held liable for the harmful actions of its employees. The paper illustrates how Employers could be liable under the doctrine of respondeat superior for defamatory statements made by its employees. Also, the paper shows some examples of how employer can be held liable for defamatory statements made by its employees under the theory of negligent retention. Additionally, this paper provides some suggestions of how employers would minimize the risk of liability for the actions of its employees under the negligent hiring theory for the actions of its employees.