Pinching Pennies in a Background Check Might Cost You

• Posted by Geoffrey G. Gussis on August 25th, 2005


• Filed in Risk Management & Compliance

The Virtual Chase has a pointer to a new article on employee background checks that points out why they may serve as important risk management tools:

"An employer can be held responsible for unlawful or improper acts of an employee when it fails to conduct a pre-employment background check and the employee has a prior criminal record. For example, 28 year old Christina Appleton was stabbed to death by co-worker, Arvie Carroll, a convicted murderer placed with Iron Horse Vineyards by a temporary agency that did not conduct a background check. The case went to trial and the jury awarded the family
$5.5 million. According to industry experts, California employers lose negligent hiring suits 60 percent of the time, and the average verdict award in such cases is $870,000."

Link: Pinching Pennies in a Background Check Might Cost You.

Don’t forget InhouseBlog’s earlier posts on the subject.