Failing to verify employment records not only puts the safety 
and security of your business at risk, but it could result in a 
negligent hiring lawsuit that could make you liable for millions 
of dollars in damages should someone that you hire injure a 
coworker or customer.

Courts have consistently ruled that employers have a duty to 
prevent workplace crime and protect their employees and 
customers from the "foreseeable" acts of an employee. Employers 
who fail to conduct a through background investigation, including
the steps needed to verify employment records, may be liable for 
facts that are known or "should have been known" regarding an 
employee's character or job-related experience.

One of the key steps to ensuring that you cover all of the bases 
to "prove" that you made a diligent effort to uncover any 
unsuitable history that your candidate may have is to verify 
employment records.

In this increasingly litigious world, previous employers are 
loathe to discuss their real experiences with a former employee. 
Many employees have successfully sued previous employers for 
releasing damaging information.  So, how do you walk the line 
between not doing anything at all, and making a diligent effort 
to verify employment records?

Your first step is to issue the employment candidate a form 
that gives you permission to verify employment records, and 
gives previous employers the right to release that information.  
Ideally, the employee should be required to sign this form in 
the presence of a Notary Public.

You should make up a list of employment-related questions and 
attach them to the form.  Mail a copy of the form, and the 
questions, to each previous employer.  Include a cover letter 
that identifies you and your company, and enclose a 
self-addressed, stamped envelope to make it easier for the 
previous employer to return the questionnaire.

If the previous employer does not respond within a week, you 
should call and ask if they received your request to have them 
verify employment records.  If they did not, ask for a fax 
number and the name of the person that you should direct the 
fax to.  Follow up again to make sure that the fax was received.

If you simply can not get an answer from the previous employer, 
or they refuse to verify employment records, then you should 
contact the candidate and explain the situation.  Tell them that 
you can not move forward with the hiring process until you have 
the required information. Suggest that candidate contact the 
former employer directly to help the process along.

If your candidate has a long employment history, spanning 10 
years or more, then it is possible that some of the employers 
will no longer be in business, or will have merged with other 
companies making them difficult to find.  In that case you will 
have to be more diligent in your steps to verify employment 
records.  Your obligation to avoid a negligent hiring lawsuit 
does not "go away" unless you can prove that you have made every 
reasonable effort to verify employment records of every new hire 
that joins your company.