Want to know if an employee is lying? It may cost you $100,000

The California Court of Appeal recently held that an employer’s violation of California Labor Code § 432.2—which prohibits employers from requiring applicants and current employees to take polygraph (or similar) tests as a condition of employment or continued employment—can support a wrongful discharge claim in violation of public policy. The court further upheld a $100,000 noneconomic damages award to the employee.

Workplace ‘who dunnit’ mystery

Kavry Management, LLC is a licensed marijuana cultivator and distributor. It hired Steven McDoniel in June 2018 as an assistant grower at its marijuana growing facility in Adelanto, California.

In August 2018, cash and marijuana were stolen from the storage room in Kavry’s growing facility. The company estimated its losses totaled about $70,000. The incident was captured on surveillance video, but the suspects couldn’t be identified because they wore “hoodies” and “face masks” and covered their car’s license plate.

Workplace investigation done wrong

In September 2018, Kavry hired a polygrapher to question its employees about the theft. Employees were told, “Y’all need to go take a polygraph test.” According to employees, including McDoniel, they took the test “because they thought they had to for their job,” and “it was take the test or basically get fired.”