Recruiting in Labor Markets

There are several legal issues that HRM needs to consider in determining how extensive the selection and placement process should be. Besides costs and time HRM should prepare for future claims against the company. Some of the more important issues HRM needs to consider are: • Negligent hiring • Unintentional discrimination • Providing equal employment opportunities • Immigrant and illegal immigrant applicants • Misuse of medical and other testing results

Negligent hiring is a legal term that indicates wrongful action on the part of the employer. Consider the case of a landlord who hired a property manager who subsequently raped one of the residents. “If the landlord did not perform a background check, or ignored the results of the background check, s/he could be held criminally liable for the rape.”  Let’s consider another example of negligent hiring in the healthcare industry. It is the responsibility of HRM to call the state licensing board and ensure that the appropriate nursing or medical license of a health care provider is current and without any problems. If HR neglects or ignores this issue and if a patient is injured in any way by the medical practitioner, the center will be held liable besides the individual. So it is essential that HRM, despite the cost, perform thorough background checks to ensure that applicants do not have bad records. Naturally the firm should ensure that it does not discriminate in trying to avoid negligent hiring. This can be a catch-22 situation. Yet the courts seem to have ruled favorably for firms that have been so accused. Leading court cases in this area have held that “if an employer’s rule against hiring applicants with criminal records has an adverse impact on minorities, the practice violates Title VII unless it is Human Resource Management

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