Incompetent Temp Workers
A temporary staffing firm assigned two temporary bookkeepers to a company for one year to cover two maternity leaves. During this period, the bookkeepers failed to pay the mortgages on the company’s properties, as well as the property taxes, resulting in a loss to the company of more than $1 million. The company sued the staffing firm for the amount of the loss, alleging negligence. An investigation revealed that both employees had work histories of poor performance and that one had once been fired for incompetence. The company succeeded in showing that had the temporary staffing firm conducted thorough background checks on its temporary employees, it would have discovered the poor work histories. Total Cost: $425,000.