Employee misconduct investigations are highly sensitive and require a thorough understanding of the laws governing the course and scope of the investigation. On December 4, 2003, President Bush signed the Fair and Accurate Credit Transactions Act of 2003 ("FACT"), amending the federal Fair Credit Reporting Act ("FCRA") in response to, among other things, the Vail opinion letter from the Federal Trade Commission (FTC). The Vail letter in 1999 concluded that the FCRA regulates workplace misconduct investigations by third parties, such as private investigators. Title VI of the FACT nullifies the Vail letter by excluding misconduct investigations from the FCRA's provisions requiring the accused's advance consent to investigate.
Title VI of the FACT excludes misconduct investigation reports and investigations into compliance with Federal, State, or local laws and regulations, the rules of a self-regulatory organization, or any preexisting written policies of the employer" from the definition of consumer reports. As a result, employers no longer have to notify the accused of the investigation, seek consent from the accused, provide the accused with a copy of the report, or wait a reasonable amount of time between giving the accused a copy of the report and taking adverse action.
The JD STONE AGENCY provides misconduct investigations that are thorough and unbiased. We deliver reports based on substantiated fact, not rumor, innuendo or ridicule. We work closely with the employer to identify the key employees with knowledge of the incidents under investigation, and conduct interviews to determine the extent of their knowledge. Either written or recorded statements are taken to preserve the witnesses comments.