You can be held legally liable — and sued — if:

• You didn't do a background check.
• You hired an employee you should have known (through proper checking) was incompetent or unfit.

Reduce the risk of a bad hire by verifying educational, criminal and credit history.

Articles Conducting Employee Background Checks: Outsource to a Professional Agency Protect your company against violent crimes, theft, harassment and other risks, and minimize your legal exposure (e.g., to allegations of discrimination, wrongful dismissal, or negligent hiring). Follow our advice and hire a professional background-checking service. Checking References: An Essential Step in the Hiring Decision Checking References, if done properly, is worth the effort and is a critical component of an intelligent hiring decision. Unfortunately, this task is difficult because past employers, fearful of getting sued by employees, can be reluctant to provide useful information to prospective employers who call to conduct a reference check. Drug Testing - A Quick Summary Every employer should consider the following points before implementing a drug-testing policy.