Can my company be sued for hiring — or keeping on — a dangerous employee?
In many states, yes. Failing to fire an employee who poses a danger to coworkers, customers, or others can lead to a lawsuit for “negligent retention.” For example, if you hire an employee to make deliveries to customers’ homes, and that employee has a serious criminal record that you failed to check, you might be liable to a customer whom the employee robs or assaults. For more on your responsibility for employees’ conduct, including tips on avoiding claims of negligent hiring and retention, see Employer Liability for an Employee’s Bad Acts.