An Illinois Tobacco company was sued recently after firing one of its employees.  Apparently the employee’s offense was “selling” items that had been intended as complimentary company gifts.  Amazingly, the employee won his case, not because he was innocent, but because his employer conducted an incomplete investigation.

Investigating employee theft is just one of the headaches you get to deal with as a business owner or manager.  Fortunately, it is a headache your PEO can assist with. 

The first step is to contact your PEO and other legal counsel as you see necessary.  Our Human Resource Staff is trained to assist you in conducting investigations.  Be sure you are aware of the laws before you take any action. 

Here are some rules to keep in mind: 

• Consider the credibility of the individual who reported the theft and their relationship with the “accused.”
• Talk to other witnesses and obtain evidence.  Remember to document everything.  Be certain to ask all parties involved to keep the situation confidential.
• Consider any sources you might have that would document the theft, such as written records, videotape, or witnesses
• With a management witness present, talk to the accused employee.  Do not detain the employee against his or her will.
• Be sure you treat the employee according to written company policy and in accordance with the way similar employee theft has been handled in the past.
• Do not accuse the employee of "theft" or "stealing" either in person or in writing.  Instead, make it clear that you are investigating violation of company policy.  
• If a termination is necessary, publicize it only to those who need to know, such as the employee's immediate supervisor.

Source:  Henderson, Bruce H.  "Putting the Cuffs on Employee Theft." Tanner & Guinn, P.C. www.tannerguin.com.