What is Negligent Hiring?

Under the doctrine of negligent hiring, an employer is liable for harm its employees inflict on third parties when the employer knew or should have known of the employee’s potential risk to cause harm, or if the risk would have been discovered by a reasonable investigation.
Negligent retention occurs when an employer fails to take appropriate disciplinary action (i.e., termination) against an employee that the employer knew or should have known was unsuitable and the employee’s actions cause harm to others.
Bottom line – check references and conduct background checks for the protection of your business.
If you would like to learn more about this and other HR matters, reach out to a Human Resource Professional.