When in doubt, check it out: Make sure you have sound reasoning for termination

They say the primary rule of journalism is, "If your mother tells you she loves you, check it out." Similarly, a primary rule of HR management, particularly before taking an adverse employment action, should be, "When in doubt, check it out." A recent case serves as a timely reminder that relying on a disputed background check report (or any disputed allegation of misconduct) without further investigation significantly increases an employer's risk.

Facts

In 2010, Tracey Molina pleaded no contest to misdemeanor grand theft after embezzling $2,600 from her then-current employer, Ocean Honda. The court dismissed her conviction three years later after she made restitution to the company, performed community service, and successfully completed her probation.

In early 2014, Molina applied for a job with another auto dealer, Premier Automotive Imports of CA, LLC. The job involved filling in for another employee scheduled to take an extended maternity leave. It also required her to be able to participate in an electronic registration program with the Department of Motor Vehicles (DMV) known as the Business Partnership Automation Program. Consistent with the dismissal of her conviction, Molina didn't report the conviction on her job application. For the same reason, Premier's outside vendor, Vigilant, didn't report it in her criminal background check report.