What liability can occur if a company fails to properly investigate an applicant's background?

Negligent hiring occurs when an employer fails to conduct a proper background check that could uncover potentially harmful information about an applicant. This liability arises when an employer hires an individual who poses a risk to other employees or customers, and that individual subsequently causes harm. If the employer could have easily discovered relevant information, such as a criminal history or previous workplace misconduct, and chose not to investigate, they may be held liable for any damage or injury that occurs due to their hiring decision.

By failing to investigate an applicant's background thoroughly, the organization risks not only its reputation but also legal repercussions if that employee's actions result in harm. In essence, it emphasizes the critical role of background checks in ensuring a safe workplace and highlights the responsibility employers have in safeguarding their employees and clients against foreseeable risks.