A recent California case, E-Fab Inc. v. Accountants, Inc. Serv. 153 Cal. App. 4th 1308 (2007) reinforces the importance of making sure any temporary agency does its job accurately and gives you proof of this.
When E-Fab needed a temporary accountant, it contacted Accountants, Inc. Services. They represented to E-Fab that the employee placed with the company had proper qualifications, credentials, and accomplishments.
Unfortunately, during the next seven years, that employee embezzled approximately $1 million from E-Fab. After discovering the embezzlement, the company contacted law enforcement and found that the employee had prior criminal convictions for theft and fraud and had been incarcerated and falsified academic credentials. The court allowed E-Fab’s lawsuit against Accountants, Inc. Services to continue, despite arguments that it was time-barred.
LESSON LEARNED:
Have the temp firm prove that they’ve done their homework. Make sure they obtain consent from any employee placed with you to provide their criminal background check, credit history, motor vehicle records, and credentials. Don’t take it for granted that the firm is doing their job.
Also pay close attention to any contractual language that mitigates or protects the temporary agency from not doing its job when placing a candidate.
