Internal Investigations Update: Employer's Right to Terminate Employees Who Refuse to Cooperate with Internal Investigation Upheld

In a June 16 decision, the U.S. Court of Appeals for the Second Circuit affirmed a lower court’s decision to dismiss a lawsuit filed by two executives at a New York insurance company who claimed they were wrongfully terminated for their refusal to cooperate in the company’s internal investigation. The decision affirmed the principle that employers may terminate employees for cause if they fail to cooperate in an internal investigation.

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