Under federal law, employers may use a lie detector test if it is part of an ongoing investigation of economic loss to its business.

Question

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Under the Employee Polygraph Protection Act of 1988, employers are generally prohibited from using lie detector tests, either for pre-employment screening or during the course of employment, with certain exceptions. One of these exceptions allows for the use of polygraph tests by an employer who is investigating losses due to theft, embezzlement, or other economic loss, provided specific conditions are met, including reasonable suspicion that the employee was involved in the incident being investigated.

Under Federal Law, Employers May Use a Lie Detector Test