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Top Reason for Having Company Policy for Employee Use of Company Resources
Employee use of company equipment, supplies, and resources is very common; it can involve something as simple as worker using his/her assigned computer to send personal emails and/or “surf the net.” That sort of behavior is lost productivity. Worse still is actual use and conversion of company resources like paper and toner; the worker prints off from the internet some articles or recipes or something else for personal use. Using the copy machine falls into this category, too. Then, of course, there is a higher level of petty theft of a ream of paper, a few pens, a pad of paper or two, etc. At the most extreme, there is outright larceny like stealing a laptop, taking the petty cash, embezzling from the company account, etc.
Under the California Penal Code, all of the foregoing behavior is theft, petty theft mostly. See Cal. Penal Code, §§ 484 and 488. In general, petty theft is defined as any taking of another’s property where the value is $950 or less and the theft was not via physical threat/assault (like a mugging). Other issues are also relevant to the criminal definition. Petty theft is a misdemeanor and workers can go to jail for six months and be fined up to $1,000.
All of the foregoing behavior is also a violation of the worker’s various duties owed to his/her employer. Those duties include the duty to use one’s best efforts, to not divert a business opportunity to oneself, and the duty not to use an employer’s assets for one’s own benefit. So, in theory, the employee is also liable under civil law.
Despite all this, employee use of company resources probably dates back the very first employee in human history.
The problem for San Diego businesses is where to draw the line? A draconian policy will severely hurt worker morale. Further, in this age of websites like Glassdoor.com, a severe policy will make your business less competitive in terms of attracting new employees. But being too lenient will result in significant costs to the company in lost productivity and supplies. It is a dilemma, and a good San Diego corporate attorney can help you write a company policy that will successfully straddle the line. Here are a few thoughts
San Diego Corporate Law: Advantages of a Company Policy With Respect to Employee Use of Company Resources
There are many reasons to have a company policy with respect to employee use of company resources. The two discussed above are: (i) reducing lost productivity and (ii) lowering the cost of converted resources. Other reasons include:
- Reducing the risks from computer access with respect to virus, hacking, and other breaches of the company’s cybersecurity protocols — this is the reason for limiting what websites and types of websites are acceptable for “internet surfing”
- Reducing premature wear and tear on equipment
- Avoiding worker discontent caused by uneven enforcement
- Avoiding employee lawsuits where discipline procedures are in place, but not policies with respect to use of company resources
- Ease of updating policies if certain behavior becomes common and abusive
San Diego Corporate Law: A Mildly Tolerant Policy is Probably Best
In general, a mild tolerance for de minimis use of company resources is probably best. This is based on a cost-benefit analysis. There are definable and quantifiable costs when it comes to employee surveillance and enforcement of no-conversion rules. Let’s say you impose a no-tolerance-for-personal-photocopying policy. To enforce the policy, you probably need a security log-in passcode system/software and, maybe, cameras will need to be installed to surveil each photocopier. There is cost associated with the security equipment and the software. There are personnel costs, too. Someone needs to be assigned the job duty of reviewing the video or checking the log-in records, etc. When it is all said and done, the company has spent — let’s say — $30,000 to prevent $3,000 in lost toner, paper, and wear-and-tear on the copiers. Plus, the company has created a somewhat severe working environment which is “costing” the company something in employee morale. In the end, it is cheaper for the Company to let its workers make a few personal photocopies.
Obviously, the higher the costs (and the higher the risks) to the company, the more justified the company is in enforcing a less tolerant policy. Thus, strict enforcement of computer-use protocols may be entirely justified since the cost of a data breach or contracted virus can be massive.
For other things, a mildly tolerant policy is probably best. But, importantly, it should be a POLICY given to all employees at the start of their employment. Managers should be assigned the duty to monitor the policy and any abuse should be quickly and uniformly punished.
Contact San Diego Corporate Law Today
If you would like more information, contact attorney Michael Leonard, Esq., of San Diego Corporate Law. Mr. Leonard can be reached at (858) 483-9200 or via email.
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