Negligent Hiring Liability

Who are you really hiring?

• 34% of all applications contain outright lies about experience, education and ability to perform essential functions on the job.


• On-the-job violence costs employers $36 billion each year.


• One in six workers has a drug problem


• 85% of corporate fraud is carried out by trusted employees and management.


• 30% of all business failures are caused by employee theft

Because the average cost of negligent hiring lawsuits is $1.5 million, what you know or what you should have known about your employees can make or break your company.

Courts hold employers financially and legally responsible for criminal and harmful acts committed by employees who were not subjected to pre-employment investigations. For example, if an employee commits a violent act while at work and has a record for domestic violence but the employer did not know this, then the employer can be held liable. Also, an employer cannot ignore information it receives regarding an employee’s personal life. For example, if an employee who has no previous criminal record when hired is later convicted for assault, then the employer could be liable for negligent retention of the employee. A thorough pre-employment background investigation provides due diligence and protects you from negligent hiring and negligent retention lawsuits.

Not only individuals, but businesses, too, can be victims of identity fraud. One step to prevent liability is to know who you are hiring.

Contact Pinnacle today to set up a seminar on how to protect your company from negligence liability, workplace violence, corporate fraud, and terrorism risks.