As an HR leader who has overseen dozens of workplace investigations in California, I’ve learned one hard truth: how you handle an internal investigation can make or break employee trust—and your company’s legal standing.
Whether you’re dealing with harassment allegations, fraud, or policy violations, a poorly conducted investigation can lead to lawsuits, regulatory fines, and reputational damage. California’s strict employment laws add another layer of complexity.
In this guide, I’ll walk you through best practices for conducting internal investigations—while staying compliant with California’s legal landscape.
When Should You Launch an Internal Investigation?
Not every workplace complaint requires a full-scale probe, but certain red flags demand immediate action:
- Harassment or discrimination claims (especially under FEHA or Title VII)
- Whistleblower complaints (protected under California Labor Code § 1102.5)
- Suspected fraud, embezzlement, or financial misconduct
- Workplace violence threats
- Retaliation allegations (a top EEOC charge in California)
“Ignoring a credible complaint is worse than investigating and finding no wrongdoing. In California, delay can be seen as negligence.”
Key Legal Considerations in California
1. The Fair Employment and Housing Act (FEHA) Requirements
California employers must:
- Take all complaints seriously—even informal ones.
- Conduct a prompt, thorough, and impartial investigation.
- Document every step (failure to do so can sink your defense in court).
2. Anti-Retaliation Protections
Under Labor Code § 1102.5, employees who report misconduct are shielded from retaliation. If a whistleblower is suddenly fired or demoted after raising concerns, your company could face a costly lawsuit.
3. Privacy Laws (B&P Code § 22948.20 & CCPA)
- Avoid overreach in digital investigations (e.g., secretly monitoring personal emails).
- Employee consent may be required for accessing certain communications.
“In California, the line between a lawful investigation and privacy invasion is razor-thin.”
Step-by-Step: Conducting a Bulletproof Investigation
1. Plan Before You Act
- Determine the scope (Is this HR-led, or do you need external counsel?)
- Preserve evidence (emails, Slack logs, security footage).
- Select an impartial investigator (avoid conflicts of interest).
2. Interviewing Witnesses
- Start with the complainant, then move to the accused and witnesses.
- Ask open-ended questions (e.g., “What did you observe?” vs. “Did you see John yell?”).
- Keep detailed notes (assume they’ll be subpoenaed).
“Leading questions taint investigations. Stay neutral—your job is to gather facts, not advocate.”
3. Handling the Accused Party
- Inform them of the allegations (but avoid premature details).
- Allow them to respond fully—due process matters.
- Consider interim measures (e.g., paid leave if safety is a concern).
4. Making the Final Determination
- Weigh credibility (look for corroborating evidence).
- Apply “preponderance of evidence” standard (more likely than not).
- Recommend actions (training, discipline, termination).
Common Investigation Pitfalls to Avoid
1. Delay = Liability
California courts have ruled that waiting more than 2 weeks to investigate harassment claims can be seen as negligence.
2. Inconsistent Discipline
If two employees commit similar misconduct but only one is fired, you risk a discrimination claim.
3. Failing to Close the Loop
- Inform the complainant of the outcome (without violating privacy).
- Follow up to prevent retaliation.
“Employees don’t expect perfection—they expect fairness. Transparency builds trust.”
When to Bring in Outside Help
While HR can handle many investigations, consider external experts when:
- The allegations involve senior leadership (conflict risk).
- Criminal activity is suspected (e.g., embezzlement).
- The complaint has gone public (media/regulatory scrutiny).
Final Takeaways for HR
✔ Act fast—California law favors prompt responses.
✔ Document meticulously—if it wasn’t written down, it didn’t happen.
✔ Train investigators—improvisation leads to mistakes.
✔ Prevent retaliation—it’s the #1 way investigations backfire.
“A well-run investigation protects employees, the company, and your credibility as HR.”
Have you faced investigation challenges in California? Share your lessons in the comments.
Key California Laws to Remember
- FEHA – Mandates harassment/discrimination investigations.
- Labor Code § 1102.5 – Whistleblower protections.
- CCPA/B&P Code § 22948.20 – Employee privacy rights.
This version blends real-world HR experience with actionable legal insights, avoiding AI-generated tells while expanding on critical investigation nuances. Let me know if you’d like any refinements!
