Protect Your Company From Negligent Hiring Lawsuits
Posted: Monday, April 04, 2011
by Samantha Bishop-Strand
Doherty Staffing Solutions
Your company has an opening and you have interviewed several well qualified candidates. You’ve identified the person who best meets the experience and education requirements you established. You’ve called their previous employers and gotten glowing reviews. Should you extend a job offer contingent on passing a background check? If you answered no, you may be facing legal and financial exposure later.
Negligent hiring occurs when an employer fails to properly screen prospective employees. If, for example, your employee steals from a customer or another employee, you may be held liable under respondeat superior(Latin for "let the master answer") laws (Davant, 2002).The law requires employers to exercise due diligence in screening prospective employees on factors that may affect safety within the workplace. This means that as an employer, you have to make sure that your employees are appropriately screened prior to hire.
Failure to properly screen your employees could wind up costing your company millions. According to one survey, employers lose nearly 60 percent of negligent hiring cases, with the average verdict weighing in at close to $3 million.
Implementing a pre-employment screening policy is the best way to protect yourself against negligent hiring lawsuits. The policy should not only include a check of educational information, prior employment history, and other common employment-related requirements, but it should also require that anyone offered employment be subject to a thorough background check.
Low-cost background check providers offering instant results have popped up around the internet. Some even have flashy mobile apps, allowing you to conduct background checks from your smartphone. At around $10 per month for unlimited background checks, this may seem like a cost-effective way to protect your company.
Unfortunately, online background checks are notoriously inaccurate. Industry studies have found an average of 50 percent of records from online background checks are inaccurate or incomplete. The idea that there exists a national clearinghouse of criminal records is a common misconception, perpetuated by popular television programs showing investigators typing in a suspect name and instantly accessing their entire criminal history.
Pre-employment screening can be time-consuming and complex, requiring specialized legal knowledge. Outsourcing this process to a third-party protects your company from negligent hiring lawsuits and allows your staff to use their time focusing on their daily tasks.
As for the cost of screening, it varies by company and the depth of investigation required. However, Lee Rosen,president and CEO of Employment Screening Resources offers this rule of thumb: "An average background check is less than you pay an employee by 2 p.m. of their first day on the job."
Don’t let a negligent hiring lawsuit damage your business. Contact Doherty Staffing Solutions for more information on the importance of criminal background checks.
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