Because of the risk of liability for negligent hiring and for the conduct of their employees, employers are increasingly turning to the use of background checks to screen applicants for employment. An employer may be liable for negligently hiring or retaining an incompetent or unfit employee if the employer knew, or reasonably should have known, that the employee was a potential risk to others.
Background checks not only assist employers in hiring the most qualified candidate, but also help to protect other employees and third parties with whom the employer does business from employees who may be dangerous or have a record of criminal behavior. Employers have been sued for negligently hiring an employee who later injures someone as a result of his or her employment. For example, if an employer hires someone with a criminal record to service products sold to customers in their homes and the worker commits a crime against the customer, the customer may bring a negligent hiring claim against the employer. This chapter addresses the types of background checks that an employer may obtain as well as the procedures employers must follow to conduct these checks.