Cross Posted from California Peculiarities.

Seyfarth Synopsis: When employee theft occurs, employers must be cautious in investigating, avoiding self-help, and in deciding if and how to terminate the offending employee.

HiRes-e1470410742878-300x300Companies work hard to hire trustworthy employees, but employee theft can occur in any business. Employee theft takes different shapes—you may discover an employee is stealing products, supplies, confidential information or money from the company; an employee may steal more surreptitiously by padding time on a time sheet; or an employee may intentionally fail to enter vacation time taken in order to get paid for that time when they quit. Whether subtle, or as brazen as a famous thief (see https://en.wikipedia.org/wiki/Catch_Me_If_You_Can), any form of employee theft hurts your business and can present you with a difficult management situation.That’s why we’re here to help with the following tips.

1.“An Honest Man Has Nothing to Fear”—Background Checks:

Inquiring into an applicant’s history can be a useful tool to identify people with a propensity toward dishonesty, but if you use background checks, make sure you follow the rules about collection and use of information.

a) California law prohibits use of consumer credit reports for employment purposes except when hiring for certain specified positions, such as managers, peace officers, positions that involve regular access to personal and banking information of individuals, access to $10,000 or more of cash, or access to confidential or proprietary information of the employer. (Labor Code § 1024.5.)

b) State and local agencies (as well as employers in San Francisco and Richmond) cannot use information about criminal history unless and until a decision about the candidate’s minimum qualifications has already occurred. (See. e.g., Labor Code 432.9 and San Francisco Fair Chance Ordinance.)

c) In addition, under federal law, criminal history may not present an automatic barrier to employment; there must be a relationship between the criminal activity and the important elements of the job, and employers should consider the number of convictions, their nature and seriousness, how recent they are, and evidence of rehabilitation.Continue Reading What To Do About Employee Thieves—Catch Them If You Can!

On July 26, 2012, the Fourth Circuit Court of Appeals decided WEC Carolina Energy Solutions LLC v. Miller, holding that departing employees are not liable under the Computer Fraud and Abuse Act (“CFAA”) for mere violations of a company computer use policy. The Fourth Circuit’s decision solidifies the circuit split on whether employees who violate computer use policies and/or
Continue Reading Employers Beware: Fourth Circuit Adopts Narrow Interpretation of Computer Fraud and Abuse Act

By Robert Milligan and Joshua Salinas

The Computer Fraud and Abuse Act (“CFAA”) remains a potent weapon for employers to use against disgruntled employees who steal company data. The Sixth Circuit in U.S. v. Batti, No. 09-2050, 2011 WL 111745 (6th Cir. 2011)recently upheld the criminal conviction of an employee who allegedly accessed, copied, and leaked confidential information
Continue Reading Computer Fraud and Abuse Act Remains Viable Claim For Employers To Assert Against Employees Who Steal Company Data

By Paul Freehling and Scott Schaefers

The Eleventh Circuit Court of Appeals’ December 27, 2010 decision in U.S. v. Rodriguez, Appeal No. 09-15265, — F.3d –, 2010 WL 5253231 (11th Cir. Dec. 27, 2010) may mark a significant split among the federal appellate circuits over the meaning of the phrases “without authorization” and “exceeds authorized access” under the federal
Continue Reading The Eleventh Circuit Splits with the Ninth Circuit in Interpreting the Computer Fraud and Abuse Act