On December 27, 1988, the Employee Polygraph Protection Act (EPPA) became law. This federal law established guidelines for polygraph testing and imposed certain types of restrictions on most private companies and employers in regards to testing their employees. This legislation only affects commercial businesses. Local, State and Federal governmental agencies (such as police departments) are not affected by the law, nor are public agencies, such as a school system or correctional institution. In addition, there are exemptions in EPPA for some commercial businesses as follows:

• Companies under contract with the federal government
• Companies which manufacturer, distribute or dispense controlled substances
• Armored Car or Alarm and Security Companies
• Nuclear or Electrical Power Plants
• Public Water Works
• Toxic Waste Disposal

All other commercial companies and businesses can request a current employee to take a polygraph examination or suggest to such a person that a polygraph examination be taken, only when specific conditions have been satisfied. However, the employer cannot require current employees to take an examination, and if an employee refuses a request or suggestion, the employer cannot discipline or discharge the employee based on the refusal to submit to the examination. Central Polygraph Service Limited is furnishing the following information, which it believes is in good faith, and conforms with the Department of Labor’s Regulations relating to polygraph tests for employees. This information is considered only as a guideline to assist in complying with the Act and Regulations, and Central Polygraph Service Limited is disclaiming any liability in connection therewith:

Checklist for Companies and Employers:

1. The incident must be an ongoing, specific investigation.
2. It must be an identifiable economic loss to the employer.
3. Obtain a copy of the Employer Polygraph Protection Act of 1988.
4. Provide the employee with a written statement that includes:
   a. Identification of the company and location of employee
   b. Description of the loss or activity under investigation
   c. Location of the loss
   d. Specific amount of the loss
   e. Type of economic loss
   f. How the employee had access to the loss
   Note: access alone is not sufficient grounds for polygraph testing
   g. what kind of reasonable suspicion there is to suspect the employee of being involved in the loss.
5. The Statement provided to employee MUST be signed by someone other than the polygraph examiner, who is authorized to legally bind the employee, and MUST be retained by the employer for at least 3 years.
6. Read the Notice to Examinee to the employee, which should be signed, timed, dated and witnessed.
7. Provide the employee with 48 hours advanced notice (not counting weekends or holidays) to the date and time of the scheduled polygraph test.
8. Provide employee with written notice of the date, time and location of the polygraph test, including written directions if the test is to be conducted at a location other than at the place of employment.
9. Maintain a statement of adverse actions taken against the employee following a polygraph test.
10. Conduct an additional interview of employee prior to any adverse action following a polygraph test.
11. Maintain records of ALL of the above for a minimum of 3 years.
12. Employees may not waive their rights.
13. Use your company letterhead on all forms you provide to the employee. Have your corporate attorney review your actions to assure your compliance of EPPA.

Please download our Employee Theft EPPA Packet here.