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Failing to verify employment records not only puts the safety and security of your business at risk, but it could result in a negligent hiring lawsuit that could make you liable for millions of dollars in damages should someone that you hire injure a coworker or customer.

Courts have consistently ruled that employers have a duty to prevent workplace crime and protect their employees and customers from the "foreseeable" acts of an employee. Employers who fail to conduct a through background investigation, including the steps needed to verify employment records, may be liable for facts that are known or "should have been known" regarding an employee's character or job-related experience.

One of the key steps to ensuring that you cover all of the bases to "prove" that you made a diligent effort to uncover any unsuitable history that your candidate may have is to verify employment records.

In this increasingly litigious world, previous employers are loathe to discuss their real experiences with a former employee. Many employees have successfully sued previous employers for releasing damaging information. So, how do you walk the line between not doing anything at all, and making a diligent effort to verify employment records?

Your first step is to issue the employment candidate a form that gives you permission to verify employment records, and gives previous employers the right to release that information. Ideally, the employee should be required to sign this form in the presence of a Notary Public.

You should make up a list of employment-related questions and attach them to the form. Mail a copy of the form, and the questions, to each previous employer. Include a cover letter that identifies you and your company, and enclose a self-addressed, stamped envelope to make it easier for the previous employer to return the questionnaire.

If the previous employer does not respond within a week, you should call and ask if they received your request to have them verify employment records. If they did not, ask for a fax number and the name of the person that you should direct the fax to. Follow up again to make sure that the fax was received.

If you simply can not get an answer from the previous employer, or they refuse to verify employment records, then you should contact the candidate and explain the situation. Tell them that you can not move forward with the hiring process until you have the required information. Suggest that candidate contact the former employer directly to help the process along.

If your candidate has a long employment history, spanning 10 years or more, then it is possible that some of the employers will no longer be in business, or will have merged with other companies making them difficult to find. In that case you will have to be more diligent in your steps to verify employment records. Your obligation to avoid a negligent hiring lawsuit does not "go away" unless you can prove that you have made every reasonable effort to verify employment records of every new hire that joins your company.

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Kathy Wolfson writes for the business section and is interested in women in workplace issues. Visit for more resources: http://www.designer-handbags-discounts.com/conferencing/index.html

Related Information:

NBA Benefit Provider - BizFilings

NBA Resource Article - What To Ask Before You Hire

NBA Resource Article - Employment Tax Requirements

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