The Do’s and Don’ts of Background Checks, FCRA, and How to Avoid Claims of Negligent Hiring

Why Should You Attend:

Under the Occupational Safety and Health Act, employers have an obligation under the General Duty Clause to keep employees safe in the workplace. The General Duty Clause also applies to keeping people safe from injury or workplace violence. Employers have a duty of care to employees and if any individual sustains injury or violence through the foreseeable acts of another employee, the employer has failed in that duty and could face a stiff fine, compensation claim, or claims of negligent hiring. In many states there are no caps on punitive damages for negligent hiring… What this means is that settling a claim of negligent hiring can be extremely costly to employers.

The most effective way to minimize the risks of negligent hiring is through performing a thorough applicant screening and background check! However, there are some definite “Do’s” and “Don’ts” in conducting background checks to ensure you don’t step on legal landmines for failing to comply with the Fair Credit Reporting Act (FCRA).

A root cause of poor background checks, lack of FCRA compliance, and negligent hiring claims is high employee turnover. In work environments with high turnover, it can be challenging to handle the volume of applicants needed to fill open requisitions, and often employers “cut corners” to speed up the process to get new-hires onto the payroll (and working) more quickly. Although jobs must get filled-they must get filled with qualified applicants who don’t create legal risk for the organization.

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