Case of the Month: How to Handle Employee Dishonesty

Written by: Crystal M. O'Brien, Esq.

In March's Case in Point, we will discuss a case involving employee dishonesty and how to handle this otherwise difficult situation without costly implications.

A physician received a complaint from a patient and met with its front desk receptionist to inquire about a discrepancy in the accounting of cash co-payment receipts with one of the receipts a patient questioned. The full amount was not reflected on what the patient had paid for on a certain procedure.

The receptionist, upset by the accusatory tone of the question, immediately chose to leave work.  After much effort to persuade the physician not to immediately terminate the employee for odd behavior, MMC was able to convince her to allow an investigation to take place while the employee was not scheduled to return to work.

The investigation included reviewing all cash co-pay receipts for any odd or consistent errors, white-out marks, and the similar.  During a discussion with the employee, we were able to obtain a “confession” of sorts that indicated the money was taken as a short term solution to a financial problem. The employee claimed she was going to replace it at the first opportunity.

In a nutshell, we were able to allow the employer and the employee with an expeditious  plan for resolving the issue as opposed to allowing an emotionally charged and reactionary result to unfold.  The difference: an opportunity to immediately regain monies taken as opposed to subjecting the employer to the cost and inconvenience of having to respond to an employee lawsuit fueled by the employee’s bruised ego and based in defamation and slander.  The lack of evidence of theft can be a two-sided “sword” such that the employer can often be placed in the position of defending actions that were very reasonable under the circumstance.

Additionally, taking the time to investigate suspected theft permits an opportunity to craft a written repayment agreement.  This option can be all but lost if the employee is immediately fired for suspected theft.  In our case scenario, the employer is relieved of typical obligations or liability connected to a wrongful termination claim because the confession serves to shield the employer from liability.  Thus unemployment claims, workers’ compensation stress claims, and more are no longer at risk.  Moreover, a voluntary repayment plan is typical of what the District Attorney’s Office will attempt to execute --- if they agree to prosecute the matter and if they successfully prosecute.  All in all, patience and constructing a plan of action can help all involved when faced with employee dishonest acts. 

To learn more about how to manage employee dishonest acts, we invite you to call our Labor & Employment Law Department at (800) 899-MMCI (6624) for a private consultation. 

Did you know? You can schedule your own MMC University Labor & Employment Law Seminar for your organization. Just call (800) 899-MMCI (6624), ext. 5130 today!

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