No surprises: making third party investigations pay off: knowing how to handle allegations aids employers in court.

• Author: Curry, Lynne
• Position: HR Matters

You receive a letter from a former employee accusing your company of a racially hostile environment. The letter quotes comments allegedly made by two of your staff. You know your employees wouldn't make those comments and consider the letter an extortion attempt.

A newly hired employee corners you in the hallway. She says a female coworker sexually harassed her when they traveled together on a company project. Too much information--and what do you do with this hot potato?

INVESTIGATE RIGHT AWAY

According to attorney Tom Van Flein, a partner with Clapp, Peterson, Van Flein, Tiemessen and Thorsness LLC, "Investigating serious allegations is good business and good legal protection." Without the investigation, you don't know where you stand or what you're up against. By promptly investigating issues, management shows both good faith and adherence to anti-discrimination and fair-treatment policies."

USE A NEUTRAL THIRD PARTY

Although you could investigate the situation yourself, "You've got to use an independent investigator," says attorney Nelson Page with Burr, Pease & Kurtz PC. "If you don't, every conclusion drawn from the investigation is subject to question by those involved and by enforcement agencies. In any except the most simple or basic situations, you need to find someone who is both independent and perceived as independent."

COULD YOUR HR OFFICER, LAW FIRM INVESTIGATE?

"Unless the employer has a large human resources department," says Kim Colbo, an attorney with Hughes, Thorsness, Powell Huddleston & Bauman LLC, "it may not have anyone experienced enough to conduct a quality investigation. Employers who use their own staff to handle complaints internally may face additional allegations their investigation was neither neutral nor fair. If the complaint ends up in litigation and an independent investigator conducted the investigation, a jury may view an independent investigator's testimony as more credible. Also, if we as attorneys conduct the investigation, we risk becoming a necessary witness and disqualified from representing our client in litigation."

Attorney Lee Holen agrees.

"Although the HR department can sometimes investigate in less complex matters, the attorney needs to consider how close the investigator is to the individuals to be investigated and the incident. If there is any doubt that the interviews and investigation appear completely impartial, it is better to use an...