Employee Theft: Best Practices for Preventing - and Addressing – Stealing in the Workplace Thursday, April 22, 2010 Presented by the Employer Resource Institute © 2010 Employer Resource Institute. All rights reserved. These materials may not be reproduced in part or in whole by any process without written permission.

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© 2010 Employer Resource Institute. All Rights Reserved About Our Speaker Aaron A. Roblan, Esq., is a partner in the San Francisco office of the nationwide law firm Ogletree, Deakins, Nash, Smoak & Stewart, PC. Ogletree Deakins is one of America's largest law firms that focuses its practice exclusively in the arena of labor and employment law. Aaron's practice encompasses all aspects of labor and employment law, including defending employers in federal and state courts. He counsels clients on employee discipline, terminations, workplace investigations, and labor issues, among many other matters. He earned his law degree from Lewis & Clark College.

© 2010 Employer Resource Institute. All Rights Reserved Additional Handouts We’ve included four additional handout files for your webinar today, including sample workplace policies and special reports that will help you review your current practices in preventing and dealing with employee and workplace theft: 0422 Sample Policies to Prevent Workplace Theft 0422 Sample Policy on Background Checks 0422 Prehire Screening Steps in CA 0422 Trade Secrets in CA – A 7-Point Protection Plan You’ll find these files on the same download page that contained this PowerPoint file. If you have any questions, please contact us at Thanks!

Employee Theft Best Practices for Preventing (and Addressing) Stealing in the Workplace

© Business & Legal Reports, Inc What We’ll Cover Today In this webinar, you’ll learn how to: Identify and put in place the best policies and preventive controls to ward off employee theft before it happens Recognize the warning signs of employee theft in the workplace Plan and carry out effective, lawful workplace investigations Confront, discipline, and terminate employees who engage in theft

© Business & Legal Reports, Inc Workplace Theft Is A Serious Problem Theft is a common security problem Small losses add up quickly Major thefts can cost major money Theft of employees’ property is also an issue Outsiders might be involved in workplace theft You play a key role in preventing workplace theft

© Business & Legal Reports, Inc Why Employees Steal “It’s a fringe benefit” “Nobody cares; they expect it” “I deserve it” “It’s so easy” “Everybody does it; it isn’t really stealing” “The organization can afford it”

© Business & Legal Reports, Inc Warning Signs Employees Might Be Stealing Missing inventory Discrepancies in financial records Unusual documentation or computer activity Employee vehicles near loading areas Unlocked doors and windows Unusual behavior

© Business & Legal Reports, Inc Antitheft Policy Emphasize antitheft policy in new employee orientation, and include a copy in the employee handbook Review the policy regularly with all workers State your intention to enforce the policy Stress the consequences for employees who steal

© Business & Legal Reports, Inc Creating an Environment That Discourages Theft Educate employees about the cost of theft and pilferage Be a role model Establish a personnel policy of zero tolerance

© Business & Legal Reports, Inc Creating an Environment That Discourages Theft (cont.) Report all thefts or suspicious behavior Encourage employees to report thefts

© Business & Legal Reports, Inc Financial Controls Divide responsibilities Require two signatures for checks Conduct regular audits Keep alert for unusual behavior Watch for unusual computer activity

© Business & Legal Reports, Inc Material Controls Use security systems Limit access to vulnerable areas Keep a close eye on inventory counts Have goods logged in when delivered Check orders and paperwork against goods when shipping Change locks and codes

© Business & Legal Reports, Inc Visitor Controls Control entry Require sign in and sign out Escort visitors within the premises

© Business & Legal Reports, Inc Proprietary Information Limit access to sensitive information Supervise employees closely Change passwords and other security codes frequently Consider having employees sign confidentiality or nondisclosure statements Be sure employees return all business records at termination

© Business & Legal Reports, Inc Hiring Considerations Discuss the issue in new employee orientation Check references Ask for background checks Consider using pre-employment assessments

© Business & Legal Reports, Inc In-House Training and Compliance Tools Ongoing reminders about your antitheft policy Specific training for supervisors Regular (and surprise) audits Job rotations

© Business & Legal Reports, Inc Monitoring and Surveillance Written policy establishing how, when, and where you monitor employees Focus on preventing theft and other unlawful behaviors

© Business & Legal Reports, Inc Employee Searches Don’t take action without authorization Make sure searches are nondiscriminatory Use the least intrusive search methods possible

© Business & Legal Reports, Inc Always have reasonable grounds for conducting searches Raise the issue with new employees Don’t push too hard Employee Searches (cont.) Always have reasonable grounds for conducting searches Raise the issue with new employees Don’t push too hard

© Business & Legal Reports, Inc Investigations Internal investigations Police investigations Legal advice Confidentiality

© Business & Legal Reports, Inc Questioning Employees During Investigations Request employees’ consent Don’t detain reluctant employees Make sure employees understand they can leave Conduct the questioning in a confidential manner

© Business & Legal Reports, Inc Questioning Employees During Investigations (cont.) Limit the questioning Have a witness present Be careful what you say Don’t play detective

© Business & Legal Reports, Inc Polygraph Tests Use of lie detector tests is strictly limited by federal law What you can do What you can’t do

© Business & Legal Reports, Inc Polygraph Tests (cont.) Employees must be given a written statement that: Describes the incident Is legally signed Describes the employer’s loss Indicates the employee had access Describes the employer’s suspicion

© Business & Legal Reports, Inc Disciplinary Action Termination Criminal charges Restitution

© Business & Legal Reports, Inc Disciplinary Action (cont.) Follow your organization’s policies Be sure discipline is fair and consistent

Questions? Aaron A. Roblan, Esq. Ogletree, Deakins, Nash, Smoak & Stewart, P.C. Steuart Tower One Market Plaza, Suite 1300 San Francisco, CA (phone) (fax) Copyright 2010 BLR Inc.

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