What happens when an employee embezzles from the employer?
Frequently, an employer who suffers an embezzlement will be the result of an employee completely trusted by the employer. Many times an employer will say “he/she was the last person I would ever have expected to steal from me” as he/she was totally and completely trusted.
Can a company garnish an employee for embezzlement?
The Employee Retirement Income Security Act (“ERISA”), as construed by the courts, prohibits any type of garnishment, attachment, or constructive trust remedy by an employer with respect to pension and profit-sharing plans covered by ERISA, even in cases involving a terminated employee’s embezzlement against the employer.
Do you call the police for embezzlement or theft?
Many employers, especially small businesses, don’t report embezzlement fraud and employee theft. But that is a mistake. If you’re talking about a few missing supplies worth $20, it doesn’t warrant calling in law enforcement. However, you should report all serious embezzlement and employee theft situations involving high value to the police.
Is it appropriate to terminate an employee for theft?
Termination is often appropriate discipline, since employees who commit theft usually do not alter their future behavior and tend to think they can get away with it again.
What are signs that an employee is embezzling?
Keep your eyes open for these warning signs of employee fraud or embezzlement: An employee who refuses to take a vacation (afraid that theft will be detected by replacement) An employee who continually works overtime, even when not required to do so An employee who wants to take work home Excessive personal spending (new cars, trips) by an employee whose income can’t support these extravagances.
What to do if an employee embezzles?
If you think your employee is embezzling, contact a lawyer immediately. Do not attempt to conduct an in-depth investigation without consulting a lawyer first, as you may not be familiar with employment laws and what your capabilities are within legal boundaries.
How to prevent employee theft, embezzlement?
Manage Employees to Prevent Embezzlement and Theft Require employees to take a vacation. Limit overtime for employees who work in sensitive areas like payroll. Never allow employees to take work home. While good working relationships with vendors are helpful to your business, keep an eye on those relationships.
Why do employees embezzle?
Bills – Employees may embezzle because they are having financial difficulties and need money to pay their bills. Bets – Gambling addiction is common reason employees steal funds to pay for their need to bet.