Negligent Hiring
Source: Premier InfoSource
Your company can be legally liable for negligent hiring if you fail to uncover a job applicant's incompetence or unfitness by checking their references, criminal records or general background. You can be sued for negligent hiring for failure to become aware of an employee's unfitness for a particular position, or for subsequent failure to take any corrective action, such as training, reassignment, or discharge, to remedy the problem once you find out about it.