Conducting Internal Investigations: Getting This Wrong Is NOT An Option

Internal investigations are crucial for ensuring compliance, maintaining employee trust, and mitigating organizational risk. Whether triggered by a complaint, an incident, or an audit finding, following a structured and impartial process helps protect both the organization and its personnel. When done properly, an investigation can provide a legal defense to employment-related claims, as was originally recognized by the Supreme Court nearly thirty years ago in the companion cases of Faragher v. City of Boca Raton and Burlington Industries, Inc. v. Ellerth.

But when done wrong, the opposite may be true, as the Society of Human Resource Management (SHRM) recently learned when an $11.5 million verdict was awarded against it in December 2025, including $10 million in punitive damages.