Why Screen Applicants?
Failing to Screen Your Employees Can Cost You!
In at least 28 states, Negligent Hiring and Retention Laws hold employers liable for willful misconduct by their employees. In some cases, it does not matter if the actions of the employee occur outside the place or scope of employment. Failure to screen current and prospective employees for criminal history and substance abuse can cost your company millions of dollars!
Average settlements in negligent hiring cases are now 1.6 million dollars, according to Liability Consultant’s, Inc. The companies involved in such lawsuits are often prime candidates for compensating the victim. This trend can be attributed to the fact that the company is most likely to have the funds and resources available to do so.
While negligent hiring and retention laws are not necessarily new, claims have been steadily increasing since the 1980’s. Interest continues to grow, in not only determining who may be at fault for certain offenses, but also in compensating the victim. With this trend in place, it is likely the rise in negligent hiring and retention lawsuits will continue at a rapid pace.
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Case Studies: Companies Judged Negligent in Hiring in Court
WARNING: By failing to perform background checks on employees, your business may be open to serious legal and customer relation risks!
A nursing home was found liable for $235,000 for negligent hiring of an unlicensed nurse with 56 prior criminal convictions, who assaulted an 80-year-old visitor. -Deerings West Nursing Center v. Scott
A $5 million settlement was awarded to the family of a deceased female tenant against the apartment complex owner and management; the suit claimed that the tenant was killed by the brother of the complex’s assistant manager, and that it was negligent hiring to hire an assistant manager without a criminal background check. -Liebman v. Hall Fin. Group, Inc.
An employee with a criminal record sexually assaulted a child; $1.75 million awarded for negligent hiring and retention. -Doe v. MCLO
An employer settled for a $2.5 million suit seeking to hold it liable for negligent hiring, and entrustment of an intoxicated security guard. The guard had an on-duty traffic accident in a company car which killed him and another motorist. -Butler v. Hertz Corp
A vacuum cleaner manufacturer was liable for $45,000 because one of its distributors hired a door-to-door salesperson with a criminal record, who then raped a female customer in her home; (manufacturer should have required its distributors to do pre-hiring screening of door-to-door salespersons to prevent hiring of persons with criminal histories). -McLean v. Kirby Co.
A store customer detained by security guard as a suspected shoplifter was injured while being restrained was awarded $10 million in damages in a suit against the store, claiming negligent hiring. -Porter v. Proffitt’s, Inc.