Prevent Fraud – Write it Down
Employers can effectively reduce their potential fraud liability for violations involving workplace searches by lowering employees’ expectation of privacy in the workplace. The best method that employers can use to lower this expectation of privacy is to adopt a written privacy policy that puts all employees on notice that the workplace is not private and require all employees to sign it.
Courts have generally ruled that when there is a written policy that usage of employee communications devices is subject to monitoring at work, employees have no (or a very low) expectation of privacy, and their devices may be subject to search. This can, however, turn on a number of factors, such as whether or not the policy has been enforced in the past.
A written fraud prevention and privacy policy should be posted in a prominent place in the workplace and contain the following information:
- Provide that, in order to maintain the security of the employers operations, management may gain access to and search all work areas and personal belongings, including desks, file cabinets, lockers, briefcases, handbags, pockets, and personal effects.
- State that workplace areas are subject to surveillance and business phone calls may be monitored.
- Make it clear to employees that the employer reserves the right to physically and digitally search any devices with storage or memory capabilities that they might bring to work and to make copies of any files found therein.
- Notify employees that computer systems are solely for business use, and that the Company reserves the absolute right to review, audit, monitor, and disclose all matters sent over the system or placed in storage. Computer systems specified in the policy should include Company email, internet, hardware, and software files.
In addition to a written fraud prevention and privacy policy, employers can use the following measures to limit their potential liabilities for violations involving workplace searches:
- Requiring employees to provide keys to all personal locks
- Retaining a key to all desks, lockers, file cabinets, etc.
- Obtaining consent to search workplace areas.
As always, if there is a question of whether or not you’re allowed to perform a search of your employee’s possessions in the workplace, it’s best to consult with an experienced employment attorney first.
Reggie Novak is a Senior Manager in the Audit and Accounting Services Group. As a Certified Fraud Examiner, Mr. Novak can assist you with prevention services including recommending internal controls and other measures to be implemented to prevent theft or misappropriation. If fraud is suspected he can investigate and present his findings and recommendations. Contact Reggie Novak at 216.831.7171 or rnovak@cp-advisors.com for more information.
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