Yes. While the Employee Polygraph Protection Act of 1988 (EPPA) prohibits most private employers from using lie-detector tests, either for pre employment screening or during the course of employment, the Act also includes limited exemptions where polygraph tests (but no other lie-detector tests) may be administered in the private sector, subject to certain restrictions. One such exemption allows the administration of polygraph tests to employees who are reasonably suspected of involvement in a workplace incident that results in economic loss to the employer and who had access to the property that is the subject of an investigation.

Under the exemption for ongoing investigations of workplace incidents involving economic loss, a written or verbal statement must be provided to the employee prior to the polygraph test. The statement must explain the specific incident or activity being investigated and the basis for the employer's reasonable suspicion that the employee was involved in such incident or activity.

When polygraph examinations are allowed, they are subject to strict standards for the conduct of the test, including the pretesting, testing, and post testing phases. An examiner must be licensed and bonded or have professional liability coverage. In addition, the Act strictly limits the disclosure of information obtained during a polygraph test.

Source: 29 USC §2001 et seq; 29 CFR Part 801.