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Timing is the issue in these cases. Both legal issues require the employer to use a great deal of care when hiring employees. This applies to both the hiring process and employee retention. The issue is that the courts must prove that the employer knew that the employee posed some sort of risk to another employee.
For example, if the employer hires someone who has a history of sexual harassment lawsuits and they hired that person who became a repeat offender. Or, if the employee had a criminal history of repeated credit card theft and was hired into a retail organization where they again broke the law. Leisure Hills Health Center Inc. In that case, Leisure Hills, a healthcare facility, hired a supervising nurse, John Parson, who had previously served as a nurse at a different employer.
Parsons had resigned from a previous job because of accusations of sexual harassment. After the third incident, the subordinate filed criminal charges and complained. Parson was suspended, and then terminated.
The court ultimately dismissed the negligent retention claim because the plaintiff had invoked the Minnesota Human Rights Act, which preempts the common law negligence claims. However, this case shows that an employer can be held liable for inadequate investigation and negligent hiring and retention of employees.
Negligence, in regards to employment, is a claim brought by an individual seeking to hold an employer liable for the damages injury caused by an employee. The elements for establishing a negligence claim in employment are basically the same as for a standard negligence claim.
As applied in the employment context, these elements are:. Employers have a duty to use reasonable care when hiring employees to ensure that they do not hire individuals who may pose a threat of injury to fellow employees, members of the public, or the workplace in general. In many cases, negligent hiring claims stem from acts of violence and sexual assault against co-workers.
When an employer fails to conduct an adequate pre-employment investigation — including, as circumstances warrant, reference checks, post-employment verifications, credit checks, and criminal record checks — that employer risks the potential for negligent hiring liability for injuries caused by a disruptive or violent employee to third parties, such as customers, clients, suppliers, visitors, or others. While the legal standards vary from state to state, damages may be awarded for actual injuries and for pain and suffering; punitive damages are not uncommon.
Note: Employers often use references to gauge the suitability of job applicants. However, companies may restrict the amount of information they provide about a former employee as a result of their concerns about privacy and defamation claims.
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