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New law: Employers must review outside investigators’ work

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in Employee Benefits Program,Employment Background Check,HR Management,Human Resources

by Thomas P. Brady, Esq., Clark Hill PLC, Detroit

In May 2008, Michigan enacted the Professional Investigator Licensure Act. The act has a significant impact on how employers can conduct background checks and investigations. A violation of the act is a felony punishable by imprisonment for not more than four years or a fine of not more than $5,000, or both.

In addition to the criminal sanctions, a circuit court can issue an injunction and impose a fine not to exceed $25,000 on a person violating the act.

Because employers often hire outside investigators to perform background checks and misconduct investigations—and also assign such tasks to in-house staff—it’s important for HR professionals to learn about this new law and make sure they comply.

What’s a ‘professional investigator’?

The act governs the licensing and regulation of “professional investigators,” defined as “a person, other than an insurance adju...(register to read more)

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