Overview: The benefits of conducting preemployment screening of job applicants cannot be overstated. Virtually every state recognizes a claim of negligent hiring against an employer if it fails to exercise reasonable care in the hiring process to ensure that a new employee is fit for the position and a third party is injured due to the employer's failure. Typically, in order to prevail, the injured party must prove that the employer knew or should have known that the employee had a propensity to engage in the alleged conduct and that he or she was reasonably likely to engage in such conduct.
Therefore, in order to avoid exposure to a negligent hiring claim, employers must perform due diligence on prospective employees in order to verify his or her fitness for duty. This includes requiring the prospective employee to complete a job application, interviewing the candidate, performing employee background checks, and verifying the information that an employee has provided to the employer on a resume and/or a job application. Sometimes the position that the employee is applying for will dictate the level of reasonable care required. In all cases, employers must be mindful of federal and state law variations when performing these screening methods.
Trends: The cost and expense of negligent hiring claims increases every year. Employers often lose negligent hiring cases and the settlement and/or verdict of such claims can reach $1 million, if not more. Therefore, the cost of performing a background check pales in comparison to being involved in a potential costly and protracted litigation.
Author: Melissa A. Silver, JD, Legal Editor
In-depth review of the spectrum of Virginia employment law requirements HR must follow with respect to preemployment screening and testing.
In-depth review of the spectrum of Rhode Island employment law requirements HR must follow with respect to Negligent Hiring.
In-depth review of the spectrum of North Carolina employment law requirements HR must follow with respect to negligent hiring.
In-depth review of the spectrum of Oklahoma employment law requirements HR must follow with respect to performance appraisals.
In-depth review of the spectrum of Texas employment law requirements HR must follow in respect to minimizing risks of negligent hiring.
In-depth review of the spectrum of New Hampshire employment law requirements HR must follow with respect to preemployment screening and testing.
In-depth review of the spectrum of Nevada employment law requirements HR must follow with respect to interviewing and selecting job candidates.
XpertHR's Financial Services Resource Center for HR helps financial services employers handle their most challenging employment issues by bringing relevant resources together in one place for easy access.
The Texas Negligent Hiring, Preemployment Screening and Testing and Performance Appraisals sections of the Employment Law Manual have been updated to reflect a new state law protecting employers from negligent hiring and supervision claims that are solely based on the fact that an employee has been convicted.
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Guidance for HR on the risks of negligent hiring claims and how to prevent them.