Understanding Economic Loss and Employment Law

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Questions and Answers

What does 'access' mean?

The opportunity to cause, or help cause, a specific economic loss or loss of a controlled substance.

What constitutes an adverse employment action?

Firing, disciplining, discriminating against, or refusing to hire or promote an applicant or current employee.

What is counterintelligence?

Information gathered and activities conducted to protect against espionage and other clandestine intelligence activities.

What are currency, negotiable securities, and precious commodities?

Assets that are typically handled by, protected for, and transported between commercial and financial institutions. Signup and view all the answers

What is meant by direct access?

Contact with or responsibility for a controlled substance as part of an employee's job responsibilities. Signup and view all the answers

What is economic loss or injury?

Financial harm to an employer's business due to various factors including theft or sabotage. Signup and view all the answers

What does an ongoing investigation refer to?

An existing investigation into a specific incident of economic loss the employer has suffered. Signup and view all the answers

How does a polygraph work?

By using sensors to measure changes in cardiovascular, respiratory, and electrodermal patterns. Signup and view all the answers

What is the primary business purpose for a security services employer?

Providing security services if at least 50% of its annual dollar volume of business derives from that activity. Signup and view all the answers

What is proprietary information?

Business assets such as trade secrets, manufacturing processes, research and development data. Signup and view all the answers

What is reasonable suspicion?

A demonstrable factual basis for believing that a particular employee was involved in economic loss. Signup and view all the answers

What areas does the EPPA contain provisions on?

Polygraph use, test results, employee's rights, polygraph examiners, and retaliation. Signup and view all the answers

Which private employers are subject to the EPPA?

Those covered by the Fair Labor Standards Act (FLSA). Signup and view all the answers

Under what conditions will persons acting on the employer's behalf be liable for EPPA violations?

Only if they had reason to know that the prospective employer would violate the EPPA. Signup and view all the answers

How does the EPPA protect former employees from discrimination?

By prohibiting negative actions against an employee who quits instead of taking a polygraph test. Signup and view all the answers

What does the EPPA prohibit employers from doing?

Requiring applicants or employees to take a polygraph test. Signup and view all the answers

Study Notes

Definitions

Access: Refers to an employee's opportunity to cause an economic loss or loss of controlled substances, which can include indirect contact with property.
Adverse Employment Action: Includes any negative employment actions like firing, disciplining, or refusing to hire/promote an employee.
Counterintelligence: Involves information and actions taken to protect against espionage, sabotage, terrorism, or permanent harm by foreign entities.
Currency, Negotiable Securities, and Precious Commodities: Assets such as cash and precious metals, primarily managed by financial institutions and businesses where cash is central to operations.
Direct Access: Involves an employee having physical contact with or responsibility for controlled substances in their job role.
Economic Loss or Injury: Financial damage to a business due to theft, embezzlement, or other crimes, also including harm to third-party property that the employer is liable for.
Ongoing Investigation: Refers to an existing inquiry into a specific incident causing economic loss for the employer.
Polygraph: A device measuring cardiovascular, respiratory, and electrodermal responses to assess honesty.
Primary Business Purpose: For security services, an employer is engaged in this if at least 50% of its annual revenue comes from security services.
Proprietary Information: Includes trade secrets, manufacturing processes, and sensitive business data critical to competitive advantage.
Reasonable Suspicion: A justified belief that an employee is involved in causing an economic loss.

EPPA Provisions

Areas Covered by EPPA:
- Polygraph use
- Test results
- Employee's rights
- Polygraph examiners
- Retaliation against employees

Polygraph Functionality

How Polygraphs Work: Measure changes in bodily functions (like pulse and breathing) during questioning; significant changes suggest potential dishonesty.

Employer Compliance

Private Employers Subject to EPPA: Must be covered by the Fair Labor Standards Act (FLSA) to fall under EPPA regulations.
Liability for EPPA Violations: Persons representing the employer can be liable if they were aware of potential EPPA violations regarding polygraph testing.
Protection for Former Employees: Employers cannot retaliate against former employees who refuse to take a polygraph test, nor can they hinder their job prospects.

EPPA Restrictions

Prohibitions for Employers: Employers are not allowed to mandate polygraph tests for applicants or current employees.

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Description

This quiz focuses on key definitions related to economic loss, employment law, and counterintelligence. Test your knowledge on terms such as access, adverse employment action, and the implications of economic injury in the workplace. It's essential for anyone working in finance or human resources to be aware of these concepts.