Thursday, October 14, 2010

The Cost of doing business can Cost you MORE than you think!!



When running any kind of business, be it a corporation, franchise, or even a mom and pop operation, it's important to know who we're hiring. One of the steps within that process is getting criminal background checks on your potential employees. You may only be interested in abiding by the hiring laws in your state, which do vary from state to state , or you may want reassurance that are employees have an honest and seemingly ethical background. Whatever the case, criminal background checks are essential if running a successful business is important to you.
As business owners, performing background checks on every subcontractor and employee may seem far too expensive. And it can be, but it's nothing compared to an expensive lawsuit. There are more and more companies that don't perform checks on their employees that are now dealing with major lawsuits. Can your corporation, franchise or small business survive a law suit for not running a proper background check, read this!

Carpet firm hit with $9.38M verdict in murder

OAKLAND, CA — In a verdict being called "a loud wake-up call" to service firms sending employees into people's homes, a California jury earlier this month determined that a company must pay $9.38 million in damages to the surviving spouse of a woman killed by a carpet cleaner.

The Alameda County Superior Court jury found America's Best Carpet Care negligent in not obtaining a background check on Jerrol Glenn Woods, 52, of Vallejo, who is serving life in prison without parole following the May 5, 1998, stabbing death of Kerry Spooner-Dean, 30. Woods pleaded guilty to murder with special circumstances two months later. He has multiple robbery convictions.

The case shows that employers can be held responsible for the actions of their employees, and the importance of conducting criminal background checks. The verdict is expected to further tarnish the image of carpet cleaners when it is featured as part of a program on service companies on ABC's 20/20 December 1.

Last week CM eNews Daily reported that ABM Industries Inc., Seattle, is being sued by a former employee who was raped on the job. Labor law attorney Jacob Monty says employers should protect themselves by running background checks on employees.

"Obviously, it's not cost-efficient to run checks on all of your employees," he says. But if employees are going into people's homes, are in a position of authority or they have access to keys, "you should do a background check on them."

Surviving spouse Daniel Dean says one of two goals in filing the wrongful death suit was to send a message to the industry that it must screen employees. The defense had presented evidence that screening was not common practice in the industry — in fact, that it was rare!
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The Oakland Tribune notes a similar case: The survivors of Terenea Fermenick won a $1 million-plus settlement from the company that employed Giles Albert Nadey Jr.
Sent to clean carpets in a rectory in 1996, Nadey, a full-time employee of a carpet cleaning company, raped and killed a minister's wife.

One of the most innovative solutions for business owners that provide Home Care Services is to work with the latest and greatest background screening products available for your type of business. One such product for Home Care Service Providers is the ID Badging of their employees. The ID Badge is only issued when a candidate has successfully passed your companies background screening requirements. This type of premiere background security system will greatly enhance your company’s mission to find good employees who are legitimate and well qualified to perform “Home Care Services” as well as reduce your company’s liability exposure, provide the utmost level of protection, and afford security with peace of mind for the home owner or business for whom you provide service.

The ID Badge is customized to your corporation, franchise or business requirements. They typically have the employee’s picture, your company name or franchise, company logo, date of the background check, and that the background check is automatically re-checked monthly. Also, the home owner or business owner can verify the ID Badge by logging into a website or by calling an 800 number. Home owners have a real sense of security when they open their door because they can verify the person coming into their home.

Should criminal activity occur after you’ve hired the employee, the badge clearance is canceled and a failed symbol is also placed under their badge on the "Verify a Badge" page on the website, which is accessible to the home owner or business you serve.

Let's be informed business owners, we need to protect our company, customers, and employees as best as we can.
Article written by Claudia Bernard, Protection Plus Solutions

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