RELIABLE BACKGROUND SCREENING NEWSLETTER – MARCH 2017

For example, in the employee arena, negligent hiring and retention liability case law is well documented. Employers have been held liable for the willful misconduct of their employees. This has occurred even when the employee was no longer working for the company at the time of the crime. Negligent hiring and retention lawsuits have cost companies millions of dollars in damages, forcing many companies into bankruptcy.

However, companies and organizations that do not properly screen other types of individuals, can similarly be found to be negligent. Whether it is a non-profit with a predatory volunteer, an apartment with a tenant that is a dangerous convicted felon, a country club member with a history of repeated DUI’s whose unsafe driving later injures a fellow country club member, or a franchisee owner with serious criminal convictions, companies and organizations are well advised to properly vet individuals that are allowed to become associated with them.

In today’s world of viral social media, it’s not even necessary for a lawsuit to be filed. Your company’s or organization’s brand can be severely or fatally damaged by social media reports of the lackadaisical business practices that allowed individuals associated with your group to hurt (physically, financially, etc.) your customers, vendors, or even other employees.

A company’s best defense against liability is to perform a thorough background check by a reliable background screening company. Be sure that the background screening company is also a consumer reporting agency, and one that understands the Fair Credit Reporting Act (FCRA, the federal law that governs background checks).

By performing thorough background checks, companies and organizations can defend against being negligent, whether in a court of law, in front of a television or newspaper reporter, or on social media.

Rudy Troisi, President
Reliable Background Screening

Last year, the LA Times reported about a woman in Long Beach who was arrested for embezzling more than $174,000 from a youth soccer club, where her son was a team member, and she served as the club treasurer.

She transferred funds into her personal accounts, used the money to fund her business, and pay for a European vacation for her children. She resigned after Board members began questioning her about the organization’s finances. She later pled guilty to embezzlement, money laundering, falsifying records, and computer fraud. She was ordered to pay $227,000 in restitution, sentenced to five years’ probation, and one year in jail.

Organizations, whether for-profit, not-for-profit, or clubs cannot rely solely on “trust” to ensure the protection of their members and the organization itself. Thorough background checks should be conducted on employees, volunteers, and members to protect records and club finances. Reliable can provide (info about Reliable here).

Reliable Background Screening is widely viewed as the experts in the intricacies of the Fair Credit Reporting Act (FCRA) and other background screening regulations. We take the time to explain these to our clients, in a simplified and practical manner, without charging extra for our expert advice. In a heavily-regulated area such as background screening, you want to partner with those who operate with the highest regard to the laws and regulations.

They SHOULD Have Known! is a monthly column written by Brett Troisi, Vice President, of Reliable Background Screening. Like everyone else at Reliable, Brett’s mission is to inform and educate the public of the importance of thorough background screening to protect your company and your brand.