Having enough workers on hand is crucial for the successful operation of most businesses. Companies need competent cashiers, effective salespeople, safety-minded manufacturing professionals and countless other workers to operate efficiently.
Unfortunately, each new hire can also be a source of liability for an organization. Employers have to be careful when selecting candidates for open positions. They also need to be proactive about protecting the organization with appropriate employment contracts and worker training. Each new worker increases a company’s exposure and risk of costly litigation.
What types of liability can potentially arise after the hiring of new employees?
Regulatory liability
Employees sometimes try to claim that businesses have violated their rights or crucial workplace regulations. Workers can initiate lawsuits based on claims of unpaid wages or other regulatory violations. Particularly as the number of employees increases and the employer is subject to more complex laws, ensuring consistent regulatory compliance is crucial to limit an employer’s liability.
Liability related to misconduct
Hiring workers would not be so risky if people openly admitted to being abusive toward others. Unfortunately, people who are racist, sexist, ableist and agist often hide those personal traits from their employers. They may then engage in misconduct, such as sexual harassment, that puts the company at risk. Organizations may be liable if they do not respond appropriately when one employee mistreats others in the workplace.
Liability stemming from job performance
Companies are typically liable for any negligence on the part of their employees. Whether an organization provides services or manufactures goods for public consumption, the risk of employees doing poor-quality work is a constant concern. One employee could make mistakes when manufacturing products that lead to consumer injuries and costly recalls. Poor work when providing services to the public might lead to people experiencing foodborne illnesses or taking legal action against the company. Employers need to be consistent in their hiring and training practices. They also need to be proactive about limiting their exposure when employees misbehave.
Learning more about employment laws and the liability that comes with hiring new workers can help organizations optimize their protection. Contracts, employee handbooks and proper training can go a long way toward limiting a company’s legal exposure.