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WARNING: By failing to perform employment
criminal background
check on employees, your business may be open to serious legal and
customer relation risks! 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’s likely the rise in negligent hiring and retention
lawsuits will continue at a rapid pace.
Are You Doing Enough To
Protect Your Employees?
Criminal behavior is not the only threat to your
business. Substance abuse can also lead to significant damages and
monetary loss. The National Clearinghouse for Drug and Alcohol Abuse
reports, “No business
regardless of size is immune to the countless problems that alcohol and
drug abuse can cause. Workplace alcohol, tobacco, and other drug related
problems cost U.S. companies over $100 billion each year".
You can protect your company, employees and
customers by performing employment criminal background check reports and random drug screening tests.
As the filing of lawsuits continues to increase,
it could be fair to say that the issue of negligent hiring requires the
attention of every employer. Now, more than ever, employers must
understand what defines negligent hiring and retention, and how they can
create a safe environment through proper hiring practices.
We Can Help!
Would you like some good news?
InfoRecordSearch.com will help you minimize risk by performing thorough
background investigations and substance abuse tests before a potential
employee is hired. Employment criminal background check will:
·
Insure the safety of all your employees and customers
·
Increase company productivity
·
Reduce turnover and training costs
·
Protect you and your company from liability in a lawsuit
Reduce Costs By Conducting
Employment Criminal Background Check reports.
·
It
costs $7,000 to replace a salaried employee, $10,000 to replace a
mid-level employee, and $40,000 to replace a senior executive. -
Recruiting Times
·
The
average organization loses more than $9 per day, per employee, and 6% of
its annual revenue to fraud and abuse. - Association of Certified Fraud
Examiners
The American Management Association reported
losses to U.S. Business due to:
·
Employee pilferage over $10 billion.
·
Commercial bribery over $10 billion.
·
Embezzlement over $4 billion
·
Vandalism over $2.5 billion
·
Burglary over $2.5 billion
·
Insurance/Workers Compensation fraud over $2 billion.
·
Arson over $1.3 billion.
·
Computer Fraud over $1 billion.
Real Negligent Hiring Cases
A furniture company was found liable for $2.5
million for negligent hiring and retention of a deliveryman who savagely
attacked a woman customer in her home. -Tallahassee Furniture Co., Inc.
v. Harrison
An employee with a criminal record sexually
assaulted a child; $1.75 million awarded for negligent hiring and
retention. -Doe v. MCLO
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
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 store customer detained by security guard as a
suspected shoplifter and injured while being restrained was awarded $10
million in damages in a suit against the store, claiming negligent
hiring. -Porter v. Proffitt's, Inc
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
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.
Other Interesting Facts
·
A
recent study found that 53% of job applications contained false
information. - The Society for Human Resource Managers
·
If
recent incarceration rates remain unchanged, an estimated 1 of every 20
persons (5.1%) will serve time in a prison during their lifetime. -
Bureau of Justice Statistics
·
30%
of business failures are due to poor hiring practices. - Department of
Commerce
·
On
average in U.S. businesses, at least half of all new hires don't work
out. - Fortune Magazine, Feb. 7, 2000, page 52
Contact us to setup the best possible legally compliant
background-screening program designed for your specific needs. |
