Negligent hiring is legal theory in which employers can be held liable for the unlawful and/or improper actions of their employees IF the court can prove that the employer failed to make “reasonable” inquiries into the job applicant’s background and suitability for the position.
Most negligent hiring lawsuits advocate that the employer failed to conduct appropriate research on their applicant (ie. criminal record history, employment verification and other employee background information) that would have disclosed the applicant’s past misconduct. These lawsuits maintain that the employer was negligent in putting an employee with a criminal history in a position where they could pose a threat to co-workers, customers or to the public in general.
Under the theory of negligent hiring, if the employer knew of a “possible” risk presented by the applicant, the employer can be held liable.
Employers found negligent in the hiring process have been subject to substantial financial penalties including both actual and punitive damages, which are now reaching millions of dollars in payouts.
If you are not currently conducting employment background checks on applicants, you are at risk for a negligent hiring lawsuit. Do not put yourself in that position. Call (866) 275-4624 to set up an account.
MBI Worldwide is diligent with staying current on employment background check compliance, as regulations can quickly change from state to state and at the federal level.