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State courts have ruled that companies can be held liable for negligent hiring if they fail to do adequate background checks.

What is negligent hiring?

Despite the fact that nearly all state and federal courts recognize a claim for negligent hiring, these courts apply various standards for liability—most significantly, the level of foreseeability required—and provide little guidance on how to avoid it.

Recently, legislation restricting employer liability for negligent hiring have been enacted in a dozen states, but even these rules vary from state to state. They often fall into three groups:

  • Limitations on the evidence. The use of a worker's criminal record as evidence is constrained unless the nature of the record directly relates to the facts supporting the claim. A theft case, for instance, would not involve a DUI.
  • Certificate of rights restoration. If a person with a criminal history meets specific requirements, a judge may issue a certificate that establishes a presumption of due care, provided that the employer was aware of the certificate at the time of hiring
  • Presumptions against liability. In specific situations, a presumption against liability for negligent hiring is created by an employer's compliance with the rules requiring criminal-background checks.

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