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Studio Security Newsletter

Dan Daley, editor

Issue #4 — October, 2000

Employee Theft -- How to Spot It, How To Prevent It

This month we have input from John Case, a nationally renowned expert in the field of thefts by employees -- a circumstance that accounts for much of the theft experienced by media facilities and American business in general.

The first thing Case points out is that, "Most employees who steal aren't doing it for the first time. And that places a much greater emphasis on pre-employment screening." If an employment application lists previous studios in the same city or region, chances are you'll know those facilities, and Case encourages prospective employers to contact previous employers — not simply to confirm that employment but also to probe a bit and find out the true basis on which the employee left.

In cases where you're not familiar with the previous place of employment, Case strongly suggests utilizing a company that does criminal checks. Using a social security number, date of birth and current address, these companies -- which are usually listed under "Employment Screening" in the Yellow Pages -- will research employment histories and do criminal background checks. The latter can turn up drug problems, as well, and as Case notes, "Theft and drugs are definitely related. In fact, I recommend a drug test for employment. It's all the more important in the entertainment industry since it has a drug culture. And it's recommended particularly for entry-level employees, because they're the ones who can least afford to buy drugs solely from salaries."

Other ways to control employee theft is to centralize the location of items that can easily disappear, such as microphones, and have ongoing control over their inventory by instituting sign-out/sign-in procedures for them, and strictly adhering to them. "What you want to do is minimize the opportunity for theft," Case explains. "A lot of employee theft incidents are simply situations of opportunity."

Other points to consider: require employees to sign confidentiality agreements, because information is often more valuable than gear. Losing a customer list could be devastating. Fun fact to know and tell: The Economic Espionage Act of 1996 requires that any putatively confidential information that an employer considers valuable has to be actively protected, such as via a password on a computer or a lock on the Rolodex. Failure to to do so voids an employer's right to sue in the event such information is stolen by an employee.

Also, protecting clients' in-studio activities from exposure to the press and public is often a condition of clients choosing a studio. Madonna does not want fans to know what days she's in which studio, and there are celebrity columnists who regularly pay for that kind of information.

For more information on the subject, check out Case's website at www.employteetheft.com, and his book, "Employee Theft -- The Profit-Killer" -- available from the site for $19.77.

Next month: Insurance

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