That question is brought up more often than you know and the answer is ‘what you do for one, you must do for all’. There is no right or wrong to run background checks on potential employees or even to do drug screens, but it’s a good practice to have in place if your company can sustain the cost of the backgrounds.
When companies were surveyed what lead to their bankruptcies or failure, 70% of them said that it was due to employee theft or fraud. It’s a real problem in any industry and the legal/insurance community knows more than any other what liability can follow should due diligence not be followed.
Check out this article on Laws that Affect Your Hiring Practices with Rod Fliegel.
http://community.intuit.com/events/laws-that-affect-your-hiring-practices-with-rod-fliegel
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