How To Protect Your California Business from Dishonest Employees

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dishonest employee california

Corporate security experts estimate that twenty-five to forty percent of all employees steal from their employers. According to the Association of Certified Fraud Examiners (ACFE), companies lose five percent of their revenues each year to employee fraud. Of course, the damages could be much worse depending on each individual company’s circumstances, because this matter is about more than just revenues. For more information on dishonest employees, their potential impact on your California business and how to guard against them, please continue reading, then contact an experienced Los Angeles County, California employment attorney today.

How do dishonest employees impact California businesses?

Employee dishonesty is any act of wrongdoing committed by an employee which could potentially result in damages. Employee dishonesty can come in various forms, including theft, lies, submission of incorrect time sheets, and other forms of unethical or unlawful conduct.

When a small business experiences a dishonest employee, the workplace can sustain lost revenue, a drop in productivity and lower morale.

How do you guard against dishonest employees in California?

First and foremost, all businesses in the Golden State should avail themselves of Employee Dishonesty Coverage – also referred to as employee theft insurance and employee dishonesty insurance – from an accredited insurance provider. However, that in and of itself will not be enough to curb employee dishonesty. Fortunately, there are several steps you can take to both discourage dishonest or unlawful behavior and to encourage positive workforce behavior. These can include doing reference checks on potential employees, notifying employees of measures in place to discourage dishonest behavior (such as telling writers that you’re using plagiarism software, conduct regular inventories of your products and surprise audits, and develop an “if you see something, say something” policy. If your employees trust that you’re here to see them succeed and that they will not be met with punishment for pointing out any dishonesty they notice on the part of their co-workers, there’s a far greater chance and wrongdoing will be brought to your attention sooner, rather than later.

You have many other methods of curtailing employee dishonesty and mitigating the damage. Whether or not the dishonest employee has already struck and requires a legal response, you should reach out to a skilled Los Angeles, California labor lawyer to discuss your full range of options.

Contact Our Experienced Los Angeles Firm

If you are involved in an employment-, commercial- or church-related dispute, contact Lee Law Offices today.