Why would it be unlawful to hire a felon? Why would the "company" be libel? They did not do the crime. If this is so then no criminal would ever be hired and most would return to crime or even worst crimes. Not saying this was not bad. Just looking at this with logic
It has nothing to do with a hiring a felon, the employer can hire a rapist but once informed he is a rapist must perform due diligence in order to protect the patrons. The employer owes due diligence in hiring as well. Did the employer do so? Thats for a jury to determine. If an attorney sees cause to file complaint.
An employer is vicariously liable for the acts of an employee as long as the employee's acts are in the scope of employment. So when an employee acts to further the employer's business, the employer will be vicariously liable (even for intentional torts). However, if the employee commits an intentional tort for purely personal reasons unrelated to the employment, most jurisdictions will not hold an employer vicariously liable. An attorney should be consulted either way.
Let me elaborate some more. The employer is someone who legally owes a duty of special care and protection, such as a common carrier (airplane, bus, passenger train), motel owner, or a hospital, the employer is usually liable to the customer or patient even if the employee acts for purely personal reasons. The theory underlying such liability is that employers should not hire dangerous people and expose the public to a risk while the employee is under the employer's supervision.
The employer may also be liable for his own actions, such as in hiring a diagnosed psychopath to be a trainer for women. An employer, therefore, can be liable for his own carelessness and as a principal whose employee is an agent.
These rules do not allow the employee to evade responsibility for harm he has caused. Injured parties generally sue both the employee and employer, but because the employee usually is unable to afford to pay the amount of damages awarded in a lawsuit, the employer is the party who is more likely to pay.
The crucial question in a respondeat superior claim is whether the employee was acting within the scope of employment: Was the employee involved in some activity related to the job? In 1991 the Supreme Court of Virginia decided a case, Sayles v. Piccadilly Cafeterias, Inc.,242 Va. 328, 410 S.E.2d 632, An employer is liable for harm done by the employee within the scope of employment, whether the act was accidental or reckless. The employer is even responsible for intentional wrongs if they are committed, at least in part, on the employer's behalf.