Bad hiring decisions cost businesses money. Likewise, the growing issues surrounding the proper verification of an applicant?s record, and the need for qualified, honest employees reflects the increasing popularity of employment background checks. These investigations can include the acquisition of information concerning a potential employee?s past employment and a possible criminal record.

The practice of conducting background investigations also helps businesses maintain a safe work environment and avoid lawsuits for negligent hiring. There are several excellent vendors who perform this service. Our firm can also advise on how to handle both the consent process and the procedural requirements for background investigations set forth in the federal Fair Credit Reporting Act.

The use of employee references involves a unique double standard.

The information obtained through the reference process can provide you as an employer with a treasure trove of information. Applicants should be advised that you plan on checking their references. You should also try and check more than one reference, and always ask specific questions about an applicant?s job responsibilities and performance record.

Giving employee references, however, can be a very tricky area, and employers should proceed with caution. While some employees may request a letter of recommendation, we typically advise against this practice, since it could present liability issues with an employee whose performance was marginal.

In addition, due to libel and slander laws, references should be restricted to dates of employment and the position(s) held by the employee. It is best to refer all reference inquiries to human resources so that managers are not put on the spot when fielding these calls.

It is essential that employees know both what conduct constitutes harassment and whom to contact in the event they feel they have been harassed.

Managers should know that retaliation against an employee who has reported harassment will not be tolerated. Likewise, once a member of management is on notice of a harassment issue, you as an employer are deemed to be on notice and can be held legally liable.

The U.S. Supreme Court has held that having a system in place for reporting harassment, and presenting employees with anti-harassment training can provide employers with a legal defense in certain cases. Making sure your workplace is free from harassment is a huge step toward shielding your business from legal liability.