"There were 674 workplace homicides in 2000, accounting for 11% of the total 5,915 fatal work injuries in the United States."
- Bureau of Labor Statistics (2001), National Census of Fatal Occupational Injuries, 2000
"Annually, about two million individuals become victims of work-related violent crimes. Crime victimization costs employers about 1,751,100 lost workdays each year… These missed days of work result in more than $55 million in lost yearly wages."
- Public Personnel Management, 2001
"Government statistics reveal that murder is the second-leading cause of job-related deaths, and nearly a million employees are the victims of nonfatal violence each year, often at the hands of co-employees."
- ABA Journal, March 1999
"In general, the courts have taken the position that if suspicious factors such as short-term residencies, gaps in employment, or admissions of criminal convictions are revealed in the employment application or in interviews with the applicant, the employer was on notice to make further inquiries into the applicant's background--including his or her criminal record. The failure to do so can result in liability if the individual commits tortuous or criminal acts after being employed."
- Security Management, March 2002
"Dealing with an incident of workplace violence could cost about $250,000 with costs of alleviating post-traumatic stress of victims and witnesses."
- Business Insurance, April 26, 1999
"An increasing number of professionals are engaging the services of companies who conduct background checks in making hiring decisions because negligent hiring in a highly competitive environment promises too many potentially catastrophic losses for these businesses."
- Colorado Business Magazine, June 1998
"In today's legal environment, the employer is the person who is being held responsible for events that happen while people are on the premises."
- Fleet Equipment, August 2000
"The rate of violent crime experienced by persons at work or on duty was 13 per 1,000 persons in the workforce."
- Occupational Safety and Health Administration, February 14, 2002
"Management commitment and employee involvement are complementary and essential elements of an effective safety and health program."
- Occupational Safety and Health Administration. OSHA, 1998
"In May 1996, Diamond Transportation hired Mujahid Nasiruddin as a bus driver on the same day he applied for the job. No pre-employment screening was conducted. He was a convicted felon just out of prison. His background included convictions over a 10-year period for conspiracy to commit robbery, felony robbery, possession of marijuana, reckless driving, and concealment of a firearm." The victim was 55, mentally retarded woman, and had the mental capacity of a six-year-old. She was awarded $3 million in compensatory damages after he raped her."
- Security Management, March 2002
Negligent Hiring
Employers can and are being held liable for the willful misconduct of their employees, even if the employees' actions occur outside the scope or place of employment. This form of liability has been defined by the legal theories and court precedents regarding negligent hiring and retention.
While these theories are not necessarily new, what is worthy of notice is the sharp increase in negligent hiring and retention claims. Beginning in the 1980's, negligent hiring and retention claims have been on a rapid rise. This rise could be perceived as part of a larger trend as courts continue to show increasing interest in not only determining guilt, but in compensating the victim.
The interest in compensation as a result of misconduct or criminal behavior can lend itself to a search for someone with "deep pockets," and the offender's employer is often the l candidate where the spotlight shines the brightest.. According to a study by Liability Consultant's, Inc., a consulting firm specializing in premises liability, the average settlement in these cases is now over $1.6 million dollars. Such sensational monetary judgments are sure to attract even more attention among potential plaintiffs and the lawyers eager to try their cases.
As awareness among victims and law firms continues to increase, it could be argued that this type of litigation will gain more and more momentum. More than ever, employers need to clearly understand what negligent hiring and retention is, what responsibilities employers have to create a safe working environment through employee selection, and what actions are necessary to reduce the risk of liability and loss.
Why should you care? A pizza restaurant has been sued for $8 million for not completing an adequate background investigation. The company hired a convicted child molester who was accused of raping two teenage employees.
A furniture company in Florida was ordered to pay $2.5 million for failing to check the background of a deliveryman after he assaulted a customer.
A Fast Food restaurant in Ohio paid $210,000 to the family of a 3-year-old who was assaulted by an employee.
