When recruiters don't catch lies on resumes

Candidate Lies, Recruiter Doesn't Check, Company pays Severance Ben...

National Medical Health Card in Port Washington, NY hired a recruiter to help recruit a new head of HR. This recruiter failed to uncover that the person eventually hired concealed two years of employment with two employers, although the recruiter did check the references - as requested by NMHC (I write this because this gets juicier).

Fallarino was hired in June 2004 the under an employment contract that specified the granting of severance benefits unless terminated for cause. Early 2005, Mr. Fallarino was accused by two HR employees that he had sexually harassed them; NMHC conducted a brief investigation and stated that with the company about to be sold, pending allegations would sour the sale.

They offered Fallarino a choice: Receive 50% of the severance or be fired for cause, lose all benefits, receive a bad reference, and receive no unemployment.

After the termination, the company learned of the "gaps" on his resume and claiming fraud, sought to have the employment contract and the severance provision rescinded. At trial, the court concluded that NMHC didn’t exercise due diligence in hiring him, wasn’t defrauded, and ordered NUMC it to pay Fallarino $191,000. NUMC appealed and lost.

In the decision, the court questioned whether resume fraud was sufficient basis for NMHC to rescind his contract. Testimony at trial showed that NMHC, its recruiter, and its interviewers failed to uncover Fallarino's true employment history. The recruiter - remember the recruiter? - testified that NMHC had not authorized him to check prior employers, only references.

"The Court ordered that Fallarino is entitled to the salary benefits, and car allowance, together with interest from the date of his termination as well as other benefits under his contract."

Views: 54

Comment by M A on November 11, 2008 at 10:06am
Oh man!! What next?! (for those with kids that watch Dora the Explorer, the "Oh man" is à la Swiper)

Yet, as a consultant who just implemented background/reference, I can see where the recruiter can wash his/her hands out of the situation: The company chose not to order all the "items on the menu", and only asked for reference checks, NOT "HR References," meaning, the vendor is not calling the HR department to confirm that the dates of employment on the resume reflect the dates of employment on the employee file... And I've seen that done with many large companies...
Comment by Steve Levy on November 11, 2008 at 8:04pm
Then again Maha, what exactly is expected from recruiters? Take everything spoken by a candidate as gospel? I hope NMHC fired the recruiter; gives us all a bad name. Thanks for reading and commenting...


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