Do you find that you have to replace office supplies too frequently? Is equipment unaccounted for? Is the register coming up short? Employee theft can take on many forms, and temptation or desperation can overcome years of loyal service. When a trusted worker has been taking from your business, it is damaging to your company’s financial health, employee morale and your peace of mind.
Given that all companies are at risk, whether big or small, what should you do when you suspect or discover theft by an employee? Business Report got some advice on the issue from three local professionals for its latest Case Study feature.
“If you suspect that employees are taking supplies, refrain from reacting immediately or emotionally,” says Jennifer Hataway, a shareholder at Kantrow, Spaht, Weaver & Blitzer. “From a legal standpoint, it is important to distinguish between what you ‘know’ and what you suspect. Making accusations of criminal conduct without having solid evidence creates a risk for a potential defamation claim should your suspicions be proven incorrect.”
Robin Schooling, Silver Zebras’ managing director, says a thorough investigation should be conducted to determine who is responsible for the theft and ascertain how it’s happening, “and then take appropriate disciplinary action that aligns with your company culture, policies and precedent.”
Kean Miller partner Scott Huffstetler recommends business owners resist the urge to try to recoup the costs of the stolen supplies by garnishing an employee’s final paycheck.
“Louisiana law permits deductions from pay where an employee is convicted or has pled guilty to theft of employer funds,” he says. “But most likely, this will not have occurred at the time the employer is terminating the employee for stealing. Assuming the employee will be convicted or plead guilty, or that the district attorney will even press charges, places the employer at risk for a wage claim.” Read the full feature. Send your comments to editors@businessreport.com.
