Fraud Author Tracy Coenen

writes about fraud detection, fraud investigation, and fraud prevention.

How to catch employees stealing: Notification of employees

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Labor and employment attorney Jennifer Walther, partner at Mawicke & Goisman, S.C., advises that court decisions generally give private employers substantial latitude in monitoring employees’ usage of electronic transmissions involving e-mail, the Internet, and computer file usage on company-owned equipment. Federal and state privacy laws that might otherwise limit a company’s ability to monitor their employees’ communications will not apply if the employees do not have a reasonable expectation of privacy in the usage of the computer equipment.

Therefore, Walther says employers should create and disseminate a written policy informing the employees that:

1. The equipment and information created and accessed from a company’s computer system is the property of the company.
2. Use of the company’s computer systems is subject to monitoring.
3. Employees should have no expectation of privacy on their employers’ systems.

The policy should differentiate between appropriate and inappropriate use of company, and it should advise the employees of the consequences for violation of the policy.

Employers should be cautious about intercepting employees’ telephone calls, as the employer is obligated to cease listening as soon as the employer determines that the call is personal, regardless of the content. Employers also should be cautious about using security cameras in a unionized work environment, as they may have to discuss that first with the union.

While monitoring employees and their communications can be perfectly legal, there may be a point at which a company creates a “Big Brother” type of atmosphere.

Such an atmosphere would be overkill, and surely would negatively affect employee morale and performance. It is important that companies track the most important information, while still affording employees a certain level of trust.

Whatever monitoring systems are in place, it is important that the systems be discreet. While it’s necessary to inform employees that the company may be monitoring activities and communications, it doesn’t have to be carried out in an “in your face” fashion. There is no need to continuously remind employees that someone is watching them, although a general awareness of monitoring activities can deter employees from unethical behavior.

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