If you find an employee stealing, it’s important that you handle it carefully so you don’t expose your company to litigation. In most cases of employee theft there is a trail you can follow.
The employee may have an unknown addiction - to gambling, drugs or something else. The employee may simply be living beyond his or her means and conclude that he or she is entitled to a "little extra" from the company. Often, an employee rationalizes the theft while continuing to steal larger and larger amounts.
How you handle a case of employee theft can mean the difference between a simple matter and complex litigation. If you find an employee stealing, it’s important that you handle it carefully so you don’t expose your company to litigation. Prevention and preparation are important.
How to Deal With an Employer Violating the Law If you are uncomfortable with a co-worker's behavior or believe your employer is breaking a workplace law, the first step is to contact your supervisor or human resources department. "Look in (your) employee handbook and see if there is a complaint process," Smithey advises.
The Next Steps: How to Handle Employee TheftEnsure the employee no longer has physical, electronic access, or financial access.Investigate the theft and the employee to determine the extent of the damage.Follow your company's disciplinary process.Report the employee's theft to the police and your insurance company.More items...
Of course, if an employee has stolen a computer, printer, or other tangible equipment, an employer is able to sue an employee for theft. An employer may also file suit against an employee who destroyed property or equipment.
Warning signs of employee theftrefusal to turn over job tasks to others.unusual working hours.poor work performance.unjustified complaints about employment.defensiveness when reporting on work.an unexplained close relationship with, or unjustified favoritism by, a supplier or customer.More items...
Embezzlement occurs when someone steals or misappropriates money or property from an employer, business partner, or another person who trusted the embezzler with the asset.
The Basic Law: In California, an employer is vicariously liable for the negligent and wrongful acts of his employees that are committed within the scope of employment.
If you believe an employee has stolen from your company, you need solid evidence of the theft. Depending on the seriousness of the theft, you may find it necessary to temporarily suspend an employee while an investigation is conducted, but you cannot fire an employee simply based on suspicion.
The process for filing charges against an employee is, in general, no different than any other criminal process. There are no special laws that pertain specifically to employees however there are criminal offenses that are more appropriate for fraud and embezzlement based on the facts of the case.
Can an employee be dismissed summarily due to theft? One might think that theft is adequate justification for immediate dismissal of an employee, but in most cases, immediate dismissal will not be upheld by the CCMA, especially if they have a knowledgeable attorney to call upon.
While dishonesty and theft are often considered “just cause” to summarily dismiss the employee, each case must be individually assessed as to whether the sanction imposed, i.e., termination, would be proportional to the seriousness of the misconduct.
Employee Theft or Embezzlement can be charged as a misdemeanor or a felony depending on the value of the property taken and the defendant's prior criminal history.
Employee theft is a crime that costs U.S. businesses an estimated $50 billion each year, according to Statistic Brain. More commonly known as embezzlement, it is the crime of an employee taking the personal property of the employer, which was entrusted to that employee.
Theft in the workplace is usually considered an act of gross misconduct, which is generally considered a lawful ground for summary dismissal, ie dismissal without notice or payment in lieu of notice.
Employee theft encompasses much more than the white collar crimes that you may hear about on the news, such as embezzlement. Employees take unlawfully from their employers in many circumstances, including: 1 Stealing office supplies or merchandise; 2 Forging or hiding receipts; 3 Overbilling expenses; 4 Falsifying time records by improperly reporting sick leave and vacation; and 5 Taking intellectual property and information.
It is not illegal for your employer to suspect, accuse, or fire you based on a suspicion of theft, since theft is considered a good cause for the purposes of firing. However, a false and unwarranted charge may allow you to sue your employer for damages, especially for wrongful discharge if you have been fired or defamation.
Report The Theft To The Authorities. When you have proof that your employee in fact stole money, you can report the employee to the authorities. Depending on what type of business you are in, you may have to report the theft to multiple agencies. Of course, reporting your employee to the police is an important first step to resolving ...
Instead, you will have to seek recovery for the money that was stolen through a civil action against your employee. The criminal action might also address your lost money by requiring the employee to pay restitution to you as part of their punishment for stealing the funds in the first place.
If you are a private employer without substantial proof that a particular employee is the thief, but you reasonably suspect that you have identified the culprit, you may have the right to subject your employee to a polygraph test in certain circumstances under federal law.
The best way to respond to employee theft is to prevent it from occurring in the first place: Use caution when recruiting. Insist on references and validate them. Require criminal background checks of all new employees. Implement internal controls to safeguard your assets.
If you’re convinced that theft has occurred, conduct a thorough investigation to gather the evidence you need to prove your case beyond a reasonable doubt. Consult your attorney for guidance, and take these steps without delay: Begin promptly so the statutes of limitations don’t run out.
In fact, an estimated one-third of all small businesses go bankrupt because of employee theft. Given the likelihood that you will confront employee theft as a small business owner, you should consider preparing how to respond. Missteps can disrupt your workplace and lead to lawsuits, compounding an already difficult situation.
To corroborate the evidence you have compiled to date, present your case to the employee you suspect of theft. Make it clear to the employee that this is a preliminary interview to capture their version of the story, not to secure a confession. Focus on the facts and communicate in a respectful, even-handed manner.
Monitor your employees and operations to keep your staff honest, but steer clear of micromanaging employees unless it’s welcome or necessary. Perform routine financial audits. Check stock and equipment on a regular basis. Provide an anonymous means for employees to report suspicious activity.
For petty theft, a written warning, probationary period and restitution may be sufficient. Present the evidence and disciplinary measures to the employee in a confidential meeting. Have one other person in the room to deter any aggression that may arise.
Unless you catch an employee red-handed, it’s important to not jump to any conclusions about a suspected theft and who’s responsible. An employee who is falsely accused could sue you for defamation.
The moment of realizing you have been a victim of employee theft can be devastating and paralyzing. Taking the steps outlined above will significantly reduce the possibility that you will become one of the statistics. If you are faced with such a situation, taking the right action immediately can mean the difference between quickly recovering your losses and years of frustration.
Often, an employee rationalizes the theft while continuing to steal larger and larger amounts. The employee may have more sinister and specific motives, such as harboring bitterness at being passed over for promotion or being demoted and intent on proving that he or she is too smart to get caught stealing.
Once you’ve investigated and concluded that an employee has been stealing, either assets or data, take the following steps: 1. Make sure your evidence is strong. Video is preferred, but witness es can also work. Gather facts and compile documentation; audit computer files, financial records; preserve evidence, such as documents, ...
How you handle a case of employee theft can mean the difference between a simple matter and complex litigation. If you find an employee stealing, it’s important that you handle it carefully so you don’t expose your company to litigation. Prevention and preparation are important. You must have a policy in place that outlines procedures ...
In a union setting, an employee has the right to have a union representative or co-worker (not a lawyer) present during any interview that the employee expects could result in discipline. 3. Notify the police. If you have insurance covering employee theft, a police report will be needed. 4.
Data Theft Counts Too. Employee theft isn’t just about physical assets or money. Data theft is increasingly common and just as, if not more, dangerous to your company. Data theft can result in loss of business for many reasons, and can jeopardize your operations if the theft is of proprietary data or of sensitive personal data of individuals.
A lawyer, driving, hits a pedestrian because she is completely engrossed in her telephone conversation with a senior partner in the firm. The law firm will probably have to pony up for the pedestrian's injuries. A medical billing company hires a fumigator, who sprays the company's office with powerful pesticides.
workers who go to a customer's home (to make deliveries, perform home repairs, or manage apartment buildings, for example) workers who deal with vulnerable people such as children, the elderly, or people with disabilities, and. workers whose jobs give them access to weapons.
After he raped a customer, the pizza franchise was liable to his victim for negligent hiring. A car rental company hired a man who later raped a coworker. Had the company verified his resume claims, it would have discovered that he was in prison for robbery during the years he claimed to be in high school and college.
If you are sued under this legal theory of respondeat superior, your employee's victim generally won't have to show that you should have known your employee might cause harm, or even that you did anything demonstrably wrong.
Under a legal doctrine sometimes referred to as "respondeat superior" (Latin for "Let the superior answer"), an employer is legally responsible for the actions of its employees. However, this rule applies only if the employee is acting within the course and scope of employment. In other words, the employer will generally be liable if ...
In some circumstances, your company may be legally responsible for harm caused by its employees. Under a handful of legal theories, courts have held employers liable for injuries their employees inflicted on coworkers, customers, or total strangers. Here, we explain those legal theories -- and a few commonsense steps you can take to steer clear ...
Workers' compensation generally protects you from lawsuits by injured employees. If an employee injures a coworker while acting within the scope of employment, the coworker probably won't be able to sue your company. Instead, the coworker can make a workers' compensation claim to receive payment for lost wages, medical bills, and so on. ...
If you’re thinking about filing suit, you probably want to speak to a lawyer. Confusing claims: There are some employment laws on the books that you might not be aware of, so you might have a case you don’t know about. And there are some laws you think exist, that don’t.
It could be a spouse or partner, a good friend, shop steward, or even a counselor in an employee assistance program (EAP).
To attend a disciplinary meeting (take good notes, don’t sign anything except a form acknowledging receipt of the discipline , and sign “as to receipt only, rebuttal to follow); To sign documents you understand, like applications, insurance forms, and tax documents.
When a work situation has reached a level where initiating an agency complaint or process is being considered, an employee should approach the decision as objectively as possible, despite the fact that at such a point the situation likely is very emotionally charged.
Being taken seriously: Some employers don’t take you seriously unless you have representation.
If the circumstances of your firing suggest that it might have been illegal, you may want to consult with an employment lawyer. A lawyer can review the facts and assess whether you have any potential legal claims. If so, a lawyer can help you think through what you want to do (if anything) to assert your rights.
For example, an employee who is fired for exercising a legal right (such as the right to vote), refusing to commit an illegal act (such as lying to government auditors or mislabeling company products), or reporting wrongdoing (such as accounting fraud) may have this type of legal claim.
Even at-will employees can't be fired for discriminatory reasons, in retaliation for reporting harassment or other wrongdoing, or because they exercised a legal right, for example. In this situation, an employee should consider consulting with an employment attorney.
You have an employment contract limiting the employer's right to fire you. In any of these situations, your firing may have been illegal -- or it may not .
It's illegal to fire an employee because of race, color, national origin, religion, sex, disability, genetic information, or age (if the employee is at least 40 years old); state and local laws often protect additional characteristics, such as marital status, sexual orientation, and gender identity. Retaliation.
So, for example, an employee who is fired for poor performance, attendance problems, or misconduct -- or even for just being a poor fit or "not working out" -- generally won't have any recourse against their employers. This doesn't mean that every firing is legal, however.
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That's because trying to curtail worker communications can be seen as an illegal attempt to prevent them from unionizing or organizing.
What's more, state laws can vary. However, generally, here are 13 things your boss can't legally do: Ask prohibited questions on job applications. Require employees to sign broad non-compete agreements. Forbid you from discussing your salary with co-workers. Not pay you overtime or minimum wage.
An employer has an obligation to ensure its workplace is a safe environment and that worker complaints are handled in an appropriate manner. Some states also require companies to provide sexual harassment training to workers or supervisors.
That's because there is no way for employees to gauge wage equality with co-workers if they can't discuss their compensation.
Not all workplace laws apply to every business and employee. For instance, some small businesses may be exempt from certain requirements, and managers may not have all the same wage protections as hourly workers. What's more, state laws can vary.
Nonexempt employees who are covered by the Fair Labor Standards Act can't be asked to do work off the clock. For instance, workers can't be required to do prep work or clean up outside their paid shifts.
Employers can get in hot water for failing to withhold payroll taxes, and they could also be on the hook for other penalties if the employee files a complaint saying they weren't properly compensated. [. READ: How to Professionally Handle an Uncomfortable Situation in the Workplace.