Liability for Negligent Hiring

Abstract

Under the theory of negligent hiring, even when employees are off duty the employer may be liable for their behavior if the employer knew or should have known that the employee was likely to behave in a certain manner (e.g., the employee has a record of violent behavior) and there is some connection between the wrongful act and the job. Employers must use reasonable care in the selection of employees (especially those with frequent guest contact), including conducting some type of background check to determine applicants' suitability for particular positions. This also applies when transferring an employee from a low-guest-contact position to a high-contact position. The appropriate extent of a pre-hiring investigation depends on the position. The employer should maintain a file that documents the results and sources of reference checks. If an employer is found liable under the theory of negligent hiring, punitive as well as compensatory damages may be awarded.