Section 29-26-206 - Employer liability(a) An employer of a therapist may be liable under § 29-26-204 if sexual misconduct occurred as provided in § 29-26-204, and either of the following applies: (1) The employer fails to take reasonable action when the employer knows or has reason to know that the therapist has engaged in sexual misconduct with any patient; or(2) The employer fails to make inquiries of a former employer concerning past sexual misconduct of the therapist and the: (A) Former employer's name and address has been disclosed to the employer;(B) Therapist was employed by the former employer as a therapist within five (5) years of the date of employment as a therapist for the employer and during the period of prior employment the therapist engaged in sexual misconduct.(b) An employer or former employer of a therapist may be liable under § 29-26-204 if: (1) Sexual misconduct occurred as provided in § 29-26-204;(2) The employer or former employer receives a written request from another employer or prospective employer concerning sexual misconduct by the therapist;(3) The employer or prospective employer is considering the therapist for a therapist position; and(4) The employer or former employer knows or has reason to know of the sexual misconduct and fails or refuses to disclose to the requesting employer the occurrence of sexual misconduct by the therapist.(c) An employer or former employer who gives information concerning sexual misconduct by a therapist when presented with a request for such information by a prospective employer of the therapist is absolved from any legal liability due to the therapist's failure to find employment or damage to the therapist's reputation as a result of the information provided, unless the information is false and the reporting employer knew or should have known that the information was false.(d) Nothing in this section is intended to affect in any way the application of employer liability if such liability rests upon negligence by the employer in supervising the therapist or where the scope of employment would encompass the sexual misconduct.