Business and legal matters
How to Investigate Suspected Employee Theft
Suspecting an employee is stressful. Acting carefully protects the business, the evidence and fairness to the employee.
Key points
- Preserve records and limit access quietly
- Don't accuse before you have facts
- Involve counsel and follow employment law
First steps
Secure records and systems, limit access quietly, and avoid confronting anyone. Talk to employment counsel.
What an investigation looks at
Inventory and transaction records, access logs, camera footage you lawfully control, witness interviews and, where appropriate, surveillance in public places.
Fairness and law
Interviews must be voluntary and non-coercive. Background checks for employment decisions may implicate the FCRA. Union and state rules may apply.
Outcomes
Findings support HR decisions, insurance claims, civil recovery or referral to police.
Common questions
Should we call police right away?
Many businesses investigate first and then refer with an evidence package.
Can we search an employee's belongings?
Consult counsel; policies and state law matter.
Will insurance cover losses?
Crime or fidelity coverage may apply. Documentation is key.
This guide is general information, not legal advice. Laws change and vary by state; consult an attorney about your situation. See our legal disclaimer.
Related services
Services connected to this guide.
Employee Theft Investigations
Identifying internal loss of inventory, cash or property.
Corporate & WorkplaceEmployee Misconduct Investigations
Fact-finding on policy violations, abuse of time and conduct complaints.
Corporate & WorkplaceInternal Investigations
Independent, documented inquiries into sensitive internal matters.
Keep reading
Related guides.
The FCRA and Private Detectives: What You Need to Know
How the Fair Credit Reporting Act affects background investigations for employment, tenants and credit, and when investigative reports are regulated.
Business and legal mattersHow to Preserve Evidence Before a Lawsuit
What to preserve before litigation: documents, devices, video, online content and scenes, plus preservation letters and avoiding spoliation.
Business and legal mattersInvestigative Due Diligence Before a Business Deal
What investigative due diligence covers before investing, partnering or acquiring: principals, litigation, reputation, ownership and red flags.
Private detectives by city
Confidential inquiry
Have a question this guide didn't answer?
Call, email or send a short confidential inquiry. You'll get a straight answer about what's possible, what's lawful and what it would involve.