What to Do If Your Employee Faces Criminal Charges

When a valued team member faces criminal charges, small business owners and managers are often unsure of how to proceed. The situation can be complex, involving legal considerations, workplace policies, and public perception. Employers must strike a balance between supporting the employee, protecting the company’s reputation, and complying with relevant laws.

Handling such situations poorly can lead to legal complications, strained employee relations, or negative media coverage. Having a clear strategy in place can help minimize disruption and ensure the business remains compliant and operational.

Understanding the Nature of the Charges

Before making any decisions, it’s essential to understand exactly what the charges involve. Criminal offenses range widely, from minor misdemeanors to serious felonies, and the severity of the charge may directly impact how you choose to respond.

Employers should avoid rushing to judgment based solely on allegations. Instead, gathering accurate information from credible sources will help determine the level of risk to the business and guide your next steps.

In cases involving criminal charges in Minnesota or in other states, laws may vary on whether employers can take action before a conviction. Being informed about state-specific legal protections for employees is crucial.

Reviewing Employment Contracts and Policies

Your company’s employment contracts, handbooks, and workplace policies may already have guidelines for handling employees accused of a crime. These documents often outline procedures for suspension, termination, or modified work assignments during legal proceedings.

If policies are not in place, decisions should still be consistent and fair to avoid accusations of discrimination. A review by legal counsel can ensure that any action taken aligns with contractual obligations and labor laws.

Balancing Employee Rights and Business Interests

Employers must navigate a delicate balance between protecting the rights of the accused employee and safeguarding the business. Presumption of innocence is a legal principle, but certain roles, especially those involving financial management, security, or public trust, may require a higher standard of conduct.

For example, if the charges relate directly to the employee’s job duties or pose a risk to customers, coworkers, or company assets, temporary reassignment or suspension may be appropriate. In contrast, if the charges are unrelated to their work and do not affect performance, the company may choose to wait until the legal matter is resolved before taking action.

Confidentiality and Communication

One of the biggest risks in these situations is mishandling communication. Sharing too much information about the employee’s case within the company can violate privacy laws or lead to defamation claims.

Employers should:

●     Limit discussions about the matter to essential personnel only

●     Avoid making public statements unless legally necessary

●     Prepare a consistent message for staff or customers if the situation becomes public knowledge

Maintaining discretion can protect both the employee’s rights and the company’s reputation.

Considering Temporary Work Modifications

If the employee can continue to work while facing charges, modifications to their duties or schedule may be necessary. This could include:

●     Adjusting responsibilities to remove access to sensitive data or finances

●     Allowing flexible hours to accommodate court appearances

●     Moving the employee to a less public-facing role during the proceedings

These steps can help maintain productivity while reducing potential risks to the business.

The Role of Legal Counsel

Employers should consult with an attorney before making any major decisions about an employee facing criminal charges. Legal counsel can:

●     Explain the implications of local and state employment laws

●     Review potential liability risks

●     Help ensure disciplinary actions are lawful and consistent

●     Advise on communication strategies

A proactive legal approach can prevent mistakes that may lead to costly lawsuits or government penalties.

Managing the Impact on Workplace Morale

An employee’s legal troubles can create tension among colleagues, especially if the situation becomes widely known. Coworkers may be concerned about safety, workload distribution, or public perception.

Employers can address these concerns by:

●     Reassuring employees that the situation is being handled appropriately

●     Maintaining transparency about operational changes without disclosing private details

●     Reinforcing workplace conduct expectations for all staff

Clear leadership during challenging times can help maintain morale and stability.

Public Relations Considerations

If the criminal charges are publicized, the company’s brand may be affected, particularly if the employee is in a leadership position or frequently interacts with the public.

A public relations plan should be ready to:

●     Respond to media inquiries with a prepared statement

●     Emphasize the company’s commitment to legal compliance and ethical standards

●     Avoid commenting on the specifics of the case beyond confirmed facts

Taking a professional and measured approach can help preserve customer trust.

Planning for Operational Continuity

In some cases, an employee facing criminal charges may be placed on leave for an extended period or may ultimately leave the company. Employers should be prepared with contingency plans to ensure operations continue smoothly.

This may involve redistributing responsibilities among existing staff, hiring temporary replacements, or cross-training employees to cover critical tasks. Operational planning can prevent disruptions that might otherwise harm productivity or client relationships.

Considering the Outcome of the Case

Once the legal process concludes, employers must decide how to proceed based on the outcome. If the employee is acquitted or charges are dropped, reinstating them to their previous role may be appropriate, provided trust and workplace harmony can be maintained.

If the employee is convicted, termination may be warranted, especially if the conviction directly impacts their job responsibilities or violates company policy. In either case, decisions should be well-documented and consistent with past practices to avoid allegations of unfair treatment.

Long-Term Policy Improvements

Experiences with employees facing criminal charges can reveal gaps in a company’s policies. Business owners may want to consider implementing:

●     Clear guidelines for handling legal issues involving employees

●     Background check procedures for new hires

●     Ongoing employee training on ethical conduct and legal compliance

Proactive measures can better prepare a company for similar challenges in the future.