Employee on Probation Causes Risk for Bank

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Question:

Yesterday a county probation officer showed up at one of our branches to visit one of our employees, who is apparently now on probation for a minor drug offense. The employee never told us that he was on probation. The probation officer wanted to search the employee’s work area(s) and she claimed that she had the legal right to do so, as terms and conditions of our employee’s probation. The probation officer went all over the branch, wherever our employee might rightly have access. She came in contact with a lot of consumer information and her presence upset all of the other employees. I simply don’t know what to do about this – and the institution’s legal counsel was absolutely of no help. Now we’re considering firing the employee for putting us in this position.

Answer:

Dan Turner: Your institution isn't unique. As more former suspects become current offenders, our justice system seeks to keep the more serious offenders behind bars and return "less serious" offenders to the community "on probation." Substance abuse offenders are usually granted probation if they agree to allow searches of their residences, workplaces and persons. The probation officer who visited your institution was likely just following probation protocol.

Such searches of most commercial workplaces usually don't create serious problems for business owners. Searches of financial institutions and other businesses who have strict information privacy requirements will likely create significant problems for those businesses. I contacted several examiners and received no guidance about how to handle this issue other than to follow your institution's procedures involving a privacy breach. So, recognizing that I'm not an attorney, here are my suggestions:

With a more effective legal counsel create and implement a policy that requires all employees, insiders and institution-affiliated parties (including board members and vendors) to notify the institution if they are placed on probation or parole as a result of a criminal conviction;
Include information about this policy in all human resources material and employee training programs, including employment applications and performance appraisals; and
Develop a protocol (step-by-step task list) that every manager must follow if a similar situation occurs again.

Regarding the employee that started this discussion -- I suggest that the employee shouldn't be disciplined. Interviewed? Monitored? Of course. But not disciplined. He was complying with a court process regarding his private life.

Answer:

Randy Carey: "who is apparently now on probation for a minor drug offense"

I don't think the bank can sit back and be satisfied with "apparently". Depending on the actual offense, you may be facing a Section 19 issue.

Answer:

Ken Golliher: Your employee may have given permission to search his workplace as a condition of his probation. That has no effect on whether your bank would allow it unless your employee actually owns the bank building.

The effect of your refusal might be the revocation of the employee's parole, but that's sort of the risk he or she took isn't it?