Negligent HiringNegligent hiring occurs when an employer knew or should have known about an applicant’s prior history that endangered customers, employees, vendors, or others with whom the employee comes in contact. Employers can prevent negligent-hiring lawsuits by carefully checking references and running background checks for all candidates. Once an employer finds out about such a history, the employer is obligated to safeguard others who come in contact with the individual during the workday by taking whatever action is necessary to maintain a safe work environment.