Negligent Hiring Lawsuits

  • By Brittany Guyton
  • 18 Aug, 2015

How to avoid them 

The hiring process can be very stressful for hiring managers or employees in the human resources department. Not only must they find a suitable applicant who possesses the skills necessary to perform the job satisfactorily, but they must also protect the company and current employees from any harm due to a new hire. Lawsuits for negligent hiring are becoming one of the fastest growing areas of litigation and employers are suffering.

Every employer must perform due diligence and exercise reasonable care for the safety of others in the workplace. Employers and hiring managers need to consider if an applicant represents any type of risk to the company or others in their potential role. If an employee is harmed by the new hire and the employer failed to perform due diligence, it is possible that the employer can be sued for damages because they did not perform their legal duty. This case represents a negligent hiring lawsuit and can result in a large settlement fee.

An employer who hires someone they knew, or in the exercise of due diligence should have known, was dangerous or unfit for the position is liable to be sued for negligent hiring. An employer will not typically hire an individual they know to be dangerous or unfit for a job. However, some employers will not perform due diligence during the hiring process and will end up hiring dangerous or unfit employees. This oversight can cause several problems in the workplace. Due diligence should be implemented as part of an employer’s standard risk mitigation process.
If an employer performs due diligence then they will be protected against a negligent hiring lawsuit. So what is involved with performing due diligence? Here are some due diligence methods that protect your company from a negligent hiring lawsuit:
  • Background Check
  • Credit Check
  • Criminal Records
  • Motor Vehicle History
  • Employment Screening
  • Education Verification
  • Drug Screening
  • Credential/License Verification

Employers and hiring managers must be proactive in performing comprehensive background checks in order to avoid liability. CourtHouse Concepts can perform all of the pre-employment screening services that a company requires to exercise due diligence. Our experienced professionals will deliver all the background check information you need to make a safe hire that will add benefit to your company. Visit or call 877-750-3660 today to find out more about how CourtHouse Concepts can protect you with pre-employment screening services.

The CHC Blog

By Mark Ridgeway 19 Jul, 2017
As a business owner or HR professional you've been there: you’re at the tail end of a particularly difficult hiring process and you’ve finally found the right candidate for the job. It’s easy to say, “Phew! Glad that’s over,” and move forward with finalizing the details.

But before you do, you should really consider ordering a background check on your candidate of choice. Integrating a background check policy can really benefit and protect your company. Here are 5 reasons you should always run a background check:

1. Stronger hires = Saving Money

Don’t just rely on your “gut feeling.” The more you know about the candidate, the better you will be able to assess if he/she is a fit for the position and for your company. Talent acquisition is a struggle in nearly every industry, so make sure that you’re not cheating yourself out of any of the available information before extending an offer.

It’s important to point out that better hires often means less turnover. We know that turnover is typically the number one cost to employers. Save yourself from investing in the wrong employee for the job.

Aside from turnover costs, as was stated in a previous blog post Who Is Stealing From You , we know that upwards of $50 billion annually in cash and inventory is stolen by employees. Does your job candidate have a history of taking extra "perks" from previous employers?

2. Safer Work Evironment
Running a background check on potential employees before officially hiring them can aide in reducing workplace violence. As an employer, you’ve made a commitment to your current employees to operate a safe work environment. Don’t skip this important step in ensuring that safety.

According to the Bureau of Labor Statistics Census of Fatal Occupational Injuries (CFOI), of the 4,679 fatal workplace injuries that occurred in the United States in 2014, 403 were workplace homicides. However it manifests itself, workplace violence is a major concern for employers and employees nationwide.

3.  Better Compliance in State & Federal Regulatory Requirements
A third-party background screening provider with in-house compliance expertise, can help your company properly create a screening solution. This not only satisfies your industry standards, but also state and federal regulatory requirements, which vary from state-to-state and by type of position you are staffing. Utilizing a partner that is a true expert in this field is important for the success of your company.

4.  Decrease the risk of being sued
Making a bad hiring decision can leave you and your company vulnerable to liability. Ordering a background check can help you find patterns in a person’s history. For example, if a potential employee has had multiple discrimination suits against them, you as an employer may be liable should the employee discriminate within your workplace. Being able to sort out candidates with these issues will help decrease the chances of a lawsuit.

5. Verifying Resumes
Does your candidate have the experience they claim? Do they really have the education and the professional licenses that are listed on their resume? A survey from CareerBuilder  of more than 2,500 hiring managers found that 56% have caught job candidates lying on their resumes.

Background checks can help you weed out the people that do not have the skills for the job. It also can help you verify that the candidate’s resume is valid.  Don’t leave yourself vulnerable to these discrepancies.

Requesting a background check for a prospective employee is perfectly within your rights as an employer. These background check reports can hold vital information that is relevant to your hiring decision. You wouldn’t choose to not gather all of the relevant information when making a different business decision, so don’t skimp here either. Take the time to do your homework and you’ll see the results!

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