You can avoid being accused of negligent hiring practices by performing “due diligence” on every employee, volunteer or independent contractor that works for your company. Implement a pre-employment background check program regardless of the law or your company size. If possible, the background check should include a criminal background check. Only allow the individual to start working for your company once the screening, including the criminal background check, has been completed.

Companies can be held legally responsible for information that is known or “should have been known” connected to a worker’s job-related experience or tortious or criminal behavior. Many courts have ruled that an employer is liable to co-workers, customers or members of the general public if the employer has knowledge or reason to believe that an employee is a risk and is unfit for the job for which they are hired. Many companies understand the importance of conducting background checks for certain positions, such as security, teachers, child care providers and caregivers for the elderly and disabled. Some positions that may be overlooked for screening include plumbers, maintenance workers, communication technicians, transportation drivers, or door-to-door workers.

Employers who do not have an adequate background check programs in place put their companies at risk and could face lawsuits from victimized or injured workers or customers. There are also other potential damages to the employer as well, including loss of business or profits, higher insurance cost or a tarnished business image. Most companies employ an outside source to conduct background checks, so they need to make sure that they follow the federal law that covers employment background checks, which is the Fair Credit Reporting Act (FCRA).

There are also state statutes that all employers need to follow to ensure compliance with the law. If you conduct the background checks yourself, the FCRA may not apply, but you will still be responsible for following applicable state laws.