Increasing law at the state/city/county level on the use of criminal records.
New laws and regulations are being enacted at the state, city, and county level which presents special challenges when recruiting and hiring from multiple locales. “Ban the Box,” while still advancing, has progressed to “Clean Slate” initiatives.
To generalize the difference between these two, “Ban the Box” restricts when you may ask for and receive criminal records and conditions on using this information after receipt. “Clean Slate” restricts this information from public record access.
One thing to watch for is past law that has current implementation. Here’s information about a Clean Slate law in New York that was signed into law one year ago, but is becoming effective this November. https://www.cleanslateny.org/faq
Monitor and review your recruiting and screening process by watching for new laws and implementation in your area of work. Ban the Box and Fair Chance Initiatives are expanding.
Higher jury verdicts for Negligent Hiring Retention
At the same time as the above, negligent hiring and retention has not gone anywhere. Employers lose 70% of negligent hiring cases. The other 30% that win are expensive wins. The losses are increasing in size.
The IRS makes a greater distinction between employee and worker than do juries.
For decades there has been much litigation and regulatory “guidance” on what makes a worker an employee or an independent contractor. Companies have spent much time and money ensuring that they do not run afoul of the IRS classification guidelines that would make their contractors employees.
These intricacies of law do not always hold the same water with juries as they do with the IRS. Juries are holding companies responsible for the actions of their contractors—even if the IRS does not strictly classify them as employees.
A jury sees a worker in someone’s home who does something bad and a consideration seems to be “I’m not sure it matters that they weren’t strictly an employee. Someone must make this right for the victim and I am going to go the entity that can make it right.”
You might want to ensure that while you painstakingly ensure your contractors are not in an employee relationship, you also don’t ignore the initial and ongoing screening of these contractors.
