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What is Negligent Hiring?
Negligent hiring is defined as an employer's failure to exercise reasonable caution when hiring an employee. Today, courts are increasingly holding employers financially and legally responsible for illegal or violent actions by employees who were not subjected to reasonable pre-employment screening. Basically, the courts are declaring that the employer is legally responsible for what they know and what they should have known about their employees. If an employee causes harm to another employee or customer, and the employer knows or should have known that the individual was a risk the courts have found the companies liable and can require the company to pay thousands, hundreds of thousands, or even millions to the plaintiff. Employers in negligent hiring cases lose over 70% of lawsuits.
How Can Employers Avoid Negligent Hiring Liability?
Employers can protect themselves from negligent hiring liability by thoroughly checking references and verifying all pertinent information about each job applicant before making a job offer. A criminal records search should be conducted for each place of residence in which a candidate has lived for at least the last seven years. Employers should perform a minimum of three business or professional references from people with whom the applicant has actually worked on a daily basis within the last seven years. In addition, employers should also confirm all degrees and licenses claimed by the applicant. By taking these simple steps, every employer should be able to clearly demonstrate that reasonable care was used in the hiring process. Avoiding negligent hiring liability requires advance planning and the employer's ability to show that they did not neglect their responsibility to properly screen employees.
Is it legal for me to request personal background information on a
potential employee?
Yes, though you are required to obtain proper authorization and distribute the necessary notices. These compliance forms are available to your company through your Peoplefacs service.
Our company doesn't have a policy regarding pre-employment procedures. Should we?
Peoplefacs recommends that all companies have a policy concerning pre-screening of employees. We would be pleased to consult with your company regarding the design and implementation of a pre-employment screening program.
How much does utilizing your service cost?
Registering is free unless you will be requesting credit reports. If credit reports are needed, a small inspection fee will be assessed. There is no monthly fee to our service, you simply are charged for what reports are requested.
How do you deliver results?
Our service is supported by a web based application. Our clients simply log into our program with a user name and password and can review all results.
Do I need to fax you the release my applicant signed?
Generally speaking no. There are a select few searches that require a signed release form in order to complete your request. However, in accordance with the Fair Credit Reporting Act you must have your applicant's express written permission to access any of their background check information when making a hiring decision. You must keep this signed release form on file for at least 3 years if you do not hire the individual. If you do hire the individual, you should keep their signed release form in their personnel file for as long as they remain employed with your organization then three years post leaving your company. From time to time, we may request copies of the documents for audit purposes.
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