Bad hires are an expensive mistake. But if you make one because a job candidate exaggerated or lied about their experience, you might have legal recourse. If a candidate misleads you during the hiring process, you could have legal grounds for a civil lawsuit for:
- Fraud. Intentionally presenting false information about their qualifications.
- Negligent misrepresentation. Making careless or inaccurate statements that the company relied upon.
- Breach of contract. If the resume or application becomes part of your employment contract, lying could be a breach.
Companies may seek compensation for the salary they paid for a position the applicant was unqualified for, the resources spent on training for a job they misrepresented their ability to do, and other employment expenses such as recruiting costs or lost productivity due to a bad hire. We recommend that companies have an attorney create a clear warning in their application that basically says don’t lie and don’t exaggerate. If you do, and we hire you and then find out that you fibbed, we have the legal right to terminate you.
Beyond Civil Lawsuits
More egregious cases could also lead to criminal charges if employees fabricate documents like diplomas or certificates and cause company harm. Resumes can be considered business records; altering them could be a crime. In some cases, the employee’s salary could even be seen as stolen if it is obtained through fraudulent means. However, pursuing a claim requires proving intent, and while resume fraud is frustrating, taking legal action isn’t easy. Consider the potential downsides:
- Costly litigation. Lawsuits are expensive. Attorney fees and court costs add up quickly, and there’s no guarantee you’ll win.
- Public relations risk. Suing a former employee can generate negative publicity and damage your brand, making it harder to attract top talent in the future.
- Scrutiny of your hiring practices. A lawsuit could expose the weaknesses in your hiring process. During discovery, the employee’s lawyer could highlight any shortcomings in your verification procedures, raising questions about your ability to screen candidates properly. Ouch!
Attract Honest Candidates Instead
By strengthening your screening processes and verification measures, you can minimize the risk of fraudulent resumes entering your candidate pool. In our last blog, we explained why the Topgrading Truth Motivator provides a solution as many of your candidates—the fakers—will drop out of the interview process because they know their previous managers won’t speak highly of their performance. That’s the information they want to keep secret, which is great because you’ll be left with stronger candidates who are likely telling the truth. Emphasizing the detailed reference check also highlights the company’s commitment to making strong hiring decisions that benefit both the company and the employee. Culligan CEO Scott Clawson uses the Truth Motivator when screening potential new employees. When Culligan is contacted to perform reference checks, his managers are encouraged to have open and honest conversations and provide a complete picture of the candidate’s past performance. Moreover, Culligan has never been sued by a former employee who felt their negative reference call prevented them from getting a job. This is for several reasons:
- Culligan is a Topgrading company that uses Job Scorecards, which means all hires know exactly what they must do to succeed.
- Bad hires are rare when using Topgrading methods.
- If someone falls short despite feedback, coaching, and support, they know they must achieve their agreed-upon performance goals or risk being terminated. This can prompt bad hires to find a better fit elsewhere.
Culligan is also based in Illinois, a state that protects companies and managers from lawsuits. For example, Illinois 745 III. Comp. Stat. § 46/10 protects employers who provide truthful information about an employee’s job performance to a prospective employer, even if that information is negative. The keyword is “truthful.” The bottom line is that companies with solid performance management programs should be legally protected from lawsuits by dishonest job seekers. One of our Topgrading professionals will be happy to learn your story and hear your hiring concerns. Call: 847-244-5544 / Email: info@topgrading.com / Contact usDr. Brad Smart is Founder and CEO of Topgrading, Inc. Topgrading is dedicated to helping companies of all sizes maximize the hiring of high performers. Topgrading assesses candidates for senior positions (where the costs of mis-hires are high) and trains all managers to create teams of almost all high performers. Brad has seven published books on hiring; the most recent three (the first, second, and third editions of Topgrading) were all best sellers. Brad, and President Chris Mursau’s new book, Foolproof Hiring (Forbes Books), is available for purchase by clicking here. After just six weeks, Foolproof Hiring, achieved Amazon Best Seller status. Brad can be reached at www.Topgrading.com To learn more, download our free eGuide or attend our next Topgrading Webinar. Our webinar explains the most effective recruitment methods, how to immediately identify the most honest, high performing applicants, and how to (finally!) verify what candidates tell you (since reference calls are usually worthless).
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