What should you do if one of your employees gets arrested?


Issue:

Don has been an employee with your company for over three years. Yesterday, he failed to show up for work, and did not call in to explain why. After contacting one of his family members, you were shocked to learn that Don had been arrested. What should you do?

Answer:    

In a situation like this, it can be tempting to act purely on instinct. Don’t. Instead, consider the following tips from Sean McDevitt, a partner with the law firm of Pepper Hamilton LLP.

Don’t act without getting good legal advice. Before making any decision about the worker’s job status, consult counsel and consider all available options. Be aware of the employee’s rights, and always act in accordance with them. Making the wrong decision may result in a costly lawsuit, a disgruntled employee, and even a demoralized staff.

Don’t talk to uninvolved third parties, such as the media or non-management employees. Employers are under an obligation to safeguard an employee’s legal rights, including not harming their reputations. Employees who do not have supervisory or decision-making status shouldn’t be included in discussions related to an employee’s arrest. Unnecessary disclosure of information could potentially result in a defamation claim if the employee is later acquitted or the charges are dropped.

Is the employee covered by an employment agreement or a union contract? Check the terms of employment agreements and union contracts carefully. Agreements may state specific reasons for termination, and an arrest may not be among them. Taking action against a unionized employee usually must satisfy a “just cause” standard. If the union feels this standard has not been met, it might file a grievance and ultimately take the case to binding arbitration, creating a financial exposure for back pay and reinstatement. This may well be the case if the alleged offense occurred outside of work and on the employee’s own time.

Was the alleged offense major or minor? Companies may be more tolerant of alleged crimes involving poor judgment, such as recreational drug possession. However, they may be more likely to take disciplinary action against an employee accused of a more serious charge involving violence or crimes of planning and calculation, such as dealing drugs or robbery.

Is the business large or small? Bigger businesses are often concerned about the impact an employee’s arrest may have on their brand identities and reputations. As such, they are more likely to impose a zero-tolerance policy. Conversely, small businesses—where owners are traditionally closer to their employees and where staffing tends to be leaner—may be more supportive of the accused employee.

What potential impact will the arrest have on the rest of your workforce? Coworkers may be reluctant to work next to someone accused of a violent or other serious crime.

Was the arrested employee treated fairly? Realize that other employees are closely monitoring the situation to see how it is being handled. They will be watching whether the employee’s rights were protected, and if all the facts related to the case were uncovered before any disciplinary decision was made. Ultimately, employees are concerned about how they would be treated by management if they are ever in the same situation.

Source: What Should You Do if an Employee Gets Arrested?, released January 9, 2007, Pepper Hamilton LLP, 400 Berwyn Park, 899 Cassatt Road, Berwyn, PA 19312; telephone: 610-640-7800.

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