Steve E. Miller
Civilizing Cyberspace: Policy, Power, and the Information Superhighway
(Reading, MA: Addison-Wesley, 1996) p. 288

In fact, the increasing number of negligent hiring lawsuits against companies whose employees misbehave gives business a powerful motivation to make sure they're not hiring a thief, child molester, convicted felon, or other person whose later misconduct (should it occur) can result in a finding of corporate liability. Once this process starts, it is not difficult to imagine that a reason would be found to reject anyone whose private life is found unacceptable by management.