When an employee gets hurt on the job, most people think workers’ compensation insurance will cover it. That is usually true for accidents that happen during normal work activities, like slipping on a wet floor or getting injured by a malfunctioning machine. But what happens when the injury is caused by a co-worker’s violent behavior, a criminal record the employer ignored, or a known risk that was never addressed? In those cases, workers’ comp may not be the only path to justice. Employers can be held directly liable for their own carelessness in hiring or keeping dangerous employees. This area of law is called negligent hiring and negligent retention.

Negligent hiring means an employer did not do a reasonable background check before putting someone in a position where they could harm others. Negligent retention means an employer knew or should have known that an employee was dangerous, but kept them on the job anyway, and that employee later caused injury. Both claims allow an injured person to sue the employer directly, often for much more than workers’ comp would pay. This is important because workers’ comp usually only covers medical bills and a portion of lost wages, and it does not allow you to sue your employer for pain and suffering. But when an employer’s own negligence leads to the injury, the legal rules change.

Let’s look at a common example. A warehouse hires a new forklift operator without checking his driving record. That operator has two past DUIs and a revoked license, but the employer never asks. Three weeks later, the operator runs over a co-worker’s leg, causing severe injury. The co-worker gets workers’ comp benefits for his medical bills and lost income. But he cannot sue the employer for the pain he will live with for years because of the broken leg. However, if the co-worker can prove the employer was negligent in not checking the operator’s background, he can file a separate lawsuit for negligent hiring. That suit can seek damages for pain and suffering, emotional distress, and loss of enjoyment of life. It can also include punitive damages if the employer’s behavior was reckless.

Negligent retention works similarly. Suppose a security guard at a shopping mall has a history of getting into fights with customers. The mall manager knows about these incidents but does nothing. One day the guard punches a customer during a dispute, breaking the customer’s jaw. The customer cannot claim workers’ comp because he is not an employee. But he can sue the mall for negligent retention. The mall had a duty to remove a known risk from the premises. By keeping the guard on staff, they allowed the injury to happen.

These claims are not limited to physical violence. They can also cover sexual harassment, theft, fraud, or even car accidents caused by employees with bad driving records. The key is that the employer had a duty to investigate potential risks and to act on known problems. Courts look at what a reasonable employer would have done. For some jobs, a basic background check is reasonable. For others, such as jobs involving children, elderly people, or access to homes, a deeper check including criminal records and reference calls is expected. If the employer cuts corners and someone gets hurt as a result, liability follows.

It’s important to understand that workers’ comp does not automatically block these lawsuits. Workers’ comp laws generally bar employees from suing their employers for work-related injuries. But negligent hiring and retention are exceptions because the injury is not caused by the normal hazards of the job – it is caused by the employer’s separate failure to protect people from a foreseeable danger. The same logic applies to customers, visitors, or anyone else hurt by an employee the employer should never have hired or should have fired.

For employers, the takeaway is clear. Cut corners on background checks or ignore warning signs, and you risk a lawsuit that can cost far more than workers’ comp premiums. For employees and the public, knowing about these claims gives you a way to hold companies accountable when they put profit ahead of safety. If you are injured at work by a co-worker’s known violent or reckless behavior, or if you are a customer hurt by an employee with a shady past, do not assume your only option is a small workers’ comp check. Talk to a lawyer who understands these liability cases. The law does not require employers to be perfect, but it does require them to be careful. When they are not, they pay the price.