prevents employers from using polygraph tests for employment recruiting and retention purposes. A polygraph test - also known as a lie detector test - employs an instrument that continuously measures heart, respiratory, and skin reactions of a subject while that person is asked a series of questions. The theory is that, when under the stress of lying, a subject's body will involuntarily react to show honesty or deception.
However, the statute excludes federal, state, and local government employers from its application, and it contains additional exemptions for national defense and security contractors, FBI agents, private security firms, and pharmaceutical firms. Additionally, polygraph tests are allowed for employees reasonably suspected of involvement in activities that would harm the business or cost it money. This would include incidents of theft, embezzlement, misappropriation, and acts of unlawful industrial espionage or sabotage. The employer must have a reasonable suspicion that the employee had access to the stolen property and is a reasonable subject of investigation.
Additionally, the law does not allow polygraph testing of employees for investigating workplace drug use, thefts from co-workers, accidents, or routine shortages in inventory or cash drawers. Refusal to take a polygraph test, even when permitted by law, may not be used as the sole basis for terminating or discriminating against an employee. Employers may face fines of up to $10,000 per incident for violations.