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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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Is it legal, and can you see any negative ramifications for

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Is it legal, and can you see any negative ramifications for offering a monetary reward (amount to be determined) to employees who disclose to management (confidentially) any stealing or inappropriate behavior happening on site at our accounts? We would send a memo to all employees letting them know of the new policy. We are a janitorial cleaning company in Philadelphia, PA trying to think of ways to avoid theft at our various accounts? I think it would serve as a deterrent for those thinking about theft, and those doing it if they know someone would snitch. I don't think there is an issue with this, but I wanted to check with you guys.

Thank you for your question.

What you are proposing is legal. There are no laws which prohibit such monetary award. The only potential issue I could see is that there might be false claims that come up which are produced out of two co-workers not getting along. This in turn could lead to a defamation claim by one co-worker against another, which could potentially end up dragging you, the employer, into the case. So, you must be very careful in the way you state the offer so as to spell out that an award will only be given once an investigation is conducted and the information is found to be correct. You should also put a warning that any false claims will subject the employee to disciplinary procedures, including termination.

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Best Regards,
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