Avoiding liability in the hiring process

With the economy booming and companies of all stripes creating jobs at a rapid pace, many businesses likely have designs on hiring in the next several months and beyond. However, they need to have a comprehensive plan in place before undergoing that process, both to make sure they can find the absolute best candidate available and to avoid liability that could arise if they unwittingly engage in unfair hiring practices.

There are many issues that could lead to liability throughout the hiring process, from initially listing a job to interviewing candidates and bringing the hire aboard. Here are just a few to look out for:

1) The listing itself

When writing a job description and information about an ideal candidate, companies should always strive to be as clear and fair as possible about the people they're looking for, according to Monster.com. For instance, it's vital to list specific expected duties for anyone hired for the open position, as well as the generally expected prerequisites for a candidate's qualifications. However, both need to be written as objectively as is reasonable and there also needs to be language in the description about the company being an equal-opportunity employer.

In addition, avoid any language that even implies certain demographic qualities about the ideal candidate, the report said. Companies that say they are looking for "young" or "energetic" candidates could reasonably be accused of age discrimination, so finding different language – such as "hard-working" – is a must.

Getting your listing right is vital to avoiding liability.

2) Look at the applications

If your company has job candidates fill out a standard application form, that is definitely something they should have a lawyer or human resources professional examine closely, Monster.com advised. Because every state has its own rules and restrictions for what companies can and can't ask for in a job search – for instance, some outlaw the use of credit data in the hiring process, which many other states allow – companies will need to follow all applicable rules to the letter, especially if they operate in multiple locations across state lines.

With that in mind, a labor lawyer or HR expert would be able to quickly and easily identify off-limits questions.

3) Refocus recruiting

If your company is engaged with active recruitment, rather than simply listing jobs publicly, it's also important for companies to make sure they're doing all they can to recruit a variety of candidates, rather than "fishing from the same pond" on an ongoing basis, according to Insurance Hub. This kind of effort helps them to avoid liability because it increases the diversity of the workplace. As long as there is no preference shown when it comes to age, race, religion, gender and the like, companies should feel free to hire the most qualified candidates.

4) Make everyone aware

Just as business leaders must do more to ensure they're revamping their hiring practices from the top down, it's also vital for those who will be doing the actual candidate screening or conducting of interviews to know what they're permitted to ask, Insurance Hub noted. There's a difference between asking if a candidate can, for example, handle the physical demands of a job versus asking if they have a medical reason they would not be able to do so. While both may seem innocuous, the latter may constitute an unfair hiring practice.

As a general rule, interviewers should treat every candidate the same, asking a similar slate of questions in an unbiased manner.

5) Dealing with candidates who have a criminal record

Some companies may be wary of hiring candidates who have been convicted of a crime, but in many cases, actively deciding not to hire them could be a liability issue, according to the Society of Human Resource Managers. There may be many reasons for added caution but employers cannot discriminate against candidates specifically for that reason.

At the other end of the spectrum, employers also need to be aware of their potential liability when it comes to an issue of workplace violence or harassment that, perhaps, could have been foreseen when it comes to hiring those with criminal records. As long as companies do their due diligence on all candidates – not just those with convictions on their record – liability is likely to be reduced or eliminated.

6) Put best practices into place

In much the same way it's important for hiring managers or interviewers to be aware of what they can and cannot ask, it's vital for everyone in the company who has any hand at all in recruiting, hiring or otherwise dealing with candidates to know the company's proscribed best practices for all facets of the process, according to the International Risk Management Institute. This means leaders have to sit down and hammer out the finer details of every part of the hiring process, so that it's standardized and clear to all involved what their responsibilities throughout the hiring process include.

Whenever companies have questions about will and won't increase their liability when they are trying to hire new workers, they should err on the side of caution and consult with legal and HR experts to better determine what they need to do to get everything right.

Categorised in: Asset & Liability Protection

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