When employee complaints arise related to discrimination, harassment, or retaliation, California employers are legally obligated to investigate. Oftentimes, organizations seek an external resource to ensure that the workplace investigation is not only prompt and thorough, but also impartial, objective, and unbiased. However, California law is specific about who is legally authorized to do so; otherwise, the employer and the investigator are exposed to legal liability and financial consequences.
Who can legally perform workplace investigations in California?
Under California law, the person who conducts a workplace investigation must be either a:
- California-licensed private investigator.
- Attorney “performing his or her duties as an attorney at law” (Cal. B&P Code §7522 (e)); or
- Employee who conducts internal investigations for their employer.
Otherwise, conducting such an investigation is prohibited by law. (Cal. B&P Code § 7523, et seq.).
While other HR firms may be willing to provide external workplace investigation services, the law prohibits them from doing so without the requisite license.
What are the consequences of violating the licensing requirements?
Under California Law, any person who is not licensed or exempt, and conducts a workplace investigation, is subject to fines up to $10,000 imposed or “by imprisonment in the county jail not to exceed one year, or both fine and imprisonment” (Cal. B&P Code § 7523(b) and Cal. B&P Code § 7523.5).
If there is a grievance, civil service appeal, or civil lawsuit related to an investigation conducted by someone who is not licensed to do so, the investigation can be invalidated. Such investigations expose the investigator and their client to potential criminal and civil liability.
Why choose California Labor Solutions?
California Labor Solutions (CLS) is one of the only HR firms that is California-licensed* to conduct workplace investigations in California. We serve private businesses and public-sector organizations throughout the state. We have conducted hundreds of neutral, objective, and unbiased workplace investigations related to identifying issues and risks within the organization and well as for employee complaints relating to allegations of discrimination, harassment, retaliation, and various types of employee misconduct with the utmost quality, detail, and efficiency.
*California Private Investigator License Number 26311.
Disclaimer:
Please note that the updates, advisories, and regulations we receive from the promulgating agency often contain ambiguities and/or are often amended, modified, or updated. This material/article/email does not contain any legal advice. The information and opinions expressed herein are based on our reasonable interpretation of the issuing agency’s publication at the time the opinion is expressed and is, therefore, subject to change based on further developments. The effect of the opinions expressed may be different based on your particular circumstances, and it is recommended that you not rely upon these general opinions prior to obtaining a consultation with your legal and/or financial advisors.