What is Negligent Hiring?
Negligent Hiring according to US Legal: “is a claim made by an injured party against an employer based on the theory that the employer knew or should have known about the employee's background which, if known, indicates a dangerous or untrustworthy character.” Essentially, if you hire an employee with a criminal record (without first running a background check, or running an inadequate background check), and they are convicted of a workplace crime, you may be subject to a negligent hiring claim.
Negligent hiring liability can occur if an employer:
- Neglects to background check prospective employees.
- Failed to sufficiently assess prospective employees.
- Hires a prospective employee despite criminal history.
OSHA estimates that over 20 Million US Workers each year are victims of workplace violence.
$50 Billion is the cost of workplace crime for U.S Organizations each year according to Statistic Brain.
Employers lose 72% of negligent hiring cases with an average settlement of $1.6 million according to a 2001 Report on Criminal Background Checks.
The best way to prevent a negligent hiring claim is be in-depth and proactive when hiring employees and volunteers. A thorough and exhaustive background check from a reliable source l will help you make better, informed decisions. FCRA compliance is critical when hiring and should be done by an accredited background screening provider like Choice Screening.
A quick database search is not enough to keep you from a negligent hiring suit. A thorough background check containing a combination of broad and narrow searches as well as searches that are directly related to the candidate’s job description will provide you with a more accurate picture of your candidate. Generally, a comprehensive background check consists of a combination of searches in four primary areas:
1. Identity & SSN verification and address history
2. Public record searches
3. Driving Records
4. Professional qualifications
5. Job-specific searches and testing
Medical Sanctions and Registries
It is best practice to use a combination of searches to get a comprehensive background check which allows you to make better informed decisions, inevitably helping to mitigate negligent hiring risk.
Please remember that as a consumer reporting agency, we cannot act as your attorney. Note that this blog is not all-inclusive. Ensure you’re consulting with a qualified employment attorney when creating and maintaining a background screening program.