What to Do When an Internal Investigation Reveals Misconduct: Next Steps

Lesley Brovner & Mark Peters
October 6, 2025

When an internal investigation reveals misconduct, there are a number of steps that should be taken promptly – all with the guidance of legal counsel.  First, a determination needs to be made as to whether the misconduct violates any laws or regulations and, if so, what reporting obligations the Company may have.  Next, a determination must be made as to the appropriate punishment to be meted out.  Finally, and just as important, a determination needs to be made about what steps must be put in place to remedy the harm from the misconduct and to prevent such misconduct from occurring in the future.

Consulting Legal Counsel for Guidance

Companies can benefit from an internal investigation and from consulting legal counsel throughout the investigation process including if the investigation turns up wrongdoing.  In particular, counsel can help with the following:

  • Determining if the workplace misconduct violates any laws, regulations or other rules.
  • Determining if the misconduct must be reported and to whom. Also, counsel can help interact with whatever government regulator needs to receive the reporting.
  • Determining what disciplinary action is appropriate under the circumstances for the individuals involved.
  • Taking steps to rectify the damage from the misconduct.
  • Taking steps to make sure the misconduct does not occur again.

Addressing Compliance and Regulatory Obligations

Regulatory compliance means adhering to all federal, State and local rules and regulations. The first thing to do if there is misconduct is to consult with counsel to see if the misconduct constitutes a violation of any of these rules and regulations.

Businesses need to be aware of both industry specific regulations and regulations that govern all businesses that operate in the City and State.  Moreover, in many areas – such as sexual harassment and human rights obligations – the City and State have more strict requirements than federal statutes.

Achieving regulatory compliance is important for several reasons: First, if you are out of compliance the government can impose harsh penalties on your organization. Dealing with those penalties can be costly and time consuming. Second, these rules exist for a reason and if you are out of compliance, you could be endangering the health, safety and welfare of employees, customers and others who come into contact with your company. This can also expose you to civil liability. Third, if your lack of compliance becomes public – either because of a private lawsuit or government investigation – the reputational harm that you suffer can be costly to your business or nonprofit.

Implementing Corrective Measures and Policy Changes

Once an organization’s workplace investigation has determined that misconduct has violated relevant laws and rules, it is important to not only to take corrective action regarding the specific misconduct (and report it as required) and also develop an ongoing compliance plan. Compliance plans ensure that organizations are in compliance with necessary rules, regulations, policies, laws, and standards. A compliance plan should do the following:

  • Outline and distribute a set of guidelines and best practices that ensure a company’s employees are following all relevant laws and regulations.
  • Train all employees on those guidelines
  • Create a system of ongoing monitoring to ensure the guidelines are followed
  • Provide for optimal communication between employees and those who oversee the program
  • Create a clear corrective action plan for if the compliance program is breached.

A compliance plan will help ensure that an organization is in compliance with all relevant laws, rules and regulations and following best practices. A robust and well monitored compliance plan can help a corporation effectively deal with wide ranging investigations and prosecutions, help a corporation save money and protect the company’s brand from scandal and lawsuits.

Managing Public Relations and Reputation Risks

Public relations and reputational risks are very real when misconduct has occurred.  Managing these risks requires many considerations.  First, is there an obligation to report the misconduct?  If there is not, is the misconduct likely to become public in any event and does self-reporting help get ahead of the problem?  Second, what immediate steps can be taken to fix the problem, so that when news of the misconduct is reported, the company is in a position to explain the remedial measures it has already taken?

Preventing Retaliation and Protecting Whistleblowers

It is important that the company make sure that there is no retaliation against Whistleblowers.  In many instances, Whistleblowers are protected by law and even where they are not, it is important that there be no retaliation, not only for ethical reasons but to ensure that the company is not subject to investigations by government regulators and civil lawsuits for that retaliation.

Monitoring and Auditing for Future Compliance

Once misconduct has been identified and steps have been taken to remediate the situation, there are a number of additional steps that should be taken to ensure future compliance.

First is to make sure there is an employee handbook that informs employees of the relevant rules and regulations and that employees have been trained on the handbook.  Second is to monitor changes to all rules and regulations that apply to your industry in your geographic area. Third is to make sure new procedures are in place when rules and regulations change. Fourth is to train staff on new rules and regulations. Fifth is to make sure there are well known consequences for failure to follow the rules and regulations.  Sixth is to have a clear corrective action plan if the rules are ever breached.

Contact Peters Brovner Today!

The investigative attorneys at the law offices of Peters Brovner LLP have decades of experience conducting complex investigations. Before founding Peters Brovner LLP, Mark Peters and Lesley Brovner served as Commissioner and First Deputy Commissioner of New York City’s Department of Investigation (“DOI”), one of the oldest law enforcement agencies in the country. At DOI, they oversaw the Inspectors General for all New York City agencies and oversaw hundreds of investigations that resulted in criminal prosecutions and major agency reforms.

Prior to DOI, Lesley was a prosecutor for many years at the New York State Attorney General’s Office where she focused on complex, white collar investigations and Mark was chief of the public corruption unit at the Attorney General’s Office.

If you or someone you know is seeking legal advice concerning an internal investigation conducted, please reach out to the lawyers at Peters Brovner LLP for a consultation.