A recent decision in a case involving the firing of two employees who refused to cooperate with an internal investigation at Marsh & McLennan Companies Inc. has brought much-needed clarity for employers and their in-house counsel. Until now, such a firing had little support in case law.
The U.S. Court of Appeals for the Second Circuit ruling in June “affirmed the principle of the duty of loyalty to one’s employer,” says John Hamlin, chief counsel for employment, benefits and governance at the company. Put simply, the ruling “gives employers the discretion to investigate fully and to cooperate with government authorities without having their hands tied,” Hamlin explains. “It’s the right result.”
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