New Texas Law Limits Liability for Employers Hiring Applicants with Criminal Backgrounds

From the legal team at Haynes and Boone, LLP:

Many employers are wary of hiring applicants with criminal records because they fear exposing themselves to potential negligent hiring or negligent supervision claims, but they also have concerns imposed by the EEOC’s aggressive interpretation of Title VII that a blanket rule against hiring persons with criminal convictions is a violation of the law. To address these conflicting concerns, as well as to increase public safety, decrease recidivism and allow job seekers with criminal records to become self-sufficient, Texas Governor Rick Perry signed H.B. 1188 on June 14, 2013. The new law amends the Texas Civil Practices and Remedies Codes so that “a cause of action may not be brought against an employer, general contractor, premises owner, or third party solely for negligently hiring or failing to adequately supervise an employee, based on evidence that the employee has been convicted of an offense.”

However, H.B. 1188 does not preclude all causes of action for negligent hiring or negligent supervision. Rather, the law includes exceptions allowing a plaintiff to bring a claim if the employer knew or should have known the employee was convicted of one of the following offenses:

  • An offense “that was committed while performing duties substantially similar to those reasonably expected to be performed in the employment, or under conditions substantially similar to those reasonably expected to be encountered in the employment,” taking into consideration the factors listed in Texas Occupations Code sections 53.022 and 53.023(a)1;
  • “An offense listed in Section 3g, Article 41.12” of the Texas Code of Criminal Procedure, which includes, for example, murder, aggravated robbery, and aggravated sexual assault; or
  • A “sexually violent offense.”

Employers may also face liability for negligent hiring and supervision claims “concerning the misuse of funds or property” if, “on the date the employee was hired, the employee had been convicted of a crime that includes fraud or the misuse of funds or property…and it was foreseeable that the position for which the employee was hired would involve discharging a fiduciary responsibility in the management of funds or property.”

H.B. 1188 goes into effect on September 1, 2013, and it will only affect causes of action which accrue after its effective date. While this statute provides some protection from negligent hiring or supervision claims, employers should continue to run background checks to determine whether an applicant is appropriate for a particular job.

  1. Anonymous says:

    What I don’t understand is why the guys in the prison can get a class A-CDL then get out and find a job. But when a man that’s been out for 1 1/2 years gets his own Class A-CDL and he cant get hired anywhere is wrong. Everyone deserves a 2nd chance.

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