Senate Enrolled Act 76, which takes effect July 1, authorizes Indiana’s Office of the Attorney General (OAG) to investigate employers suspected of knowingly or intentionally employing unauthorized workers and, where appropriate, pursue civil enforcement actions through the courts. In many cases, that process begins with the OAG’s issuance of a Civil Investigative Demand (CID).
A CID is a formal request for documents, records or other information that the OAG believes may be relevant to its investigation. For many employers, a CID will likely be their first interaction with the OAG (under SEA 76 or otherwise). Understanding the purpose of a CID – and the legal processes that follows – can help employers make informed decisions and protect their interests.
One of the questions we’ve heard most frequently from employers preparing for the law’s implementation is: What happens if my company receives a CID?
The short answer is simple: Take it seriously, but don’t panic.
Importantly, a CID is an investigative tool. It is not a determination that your company has violated the law and not a court order requiring immediate compliance. Indiana law places important limits on the CID process; specifically, the OAG must have “reasonable cause to believe” that an employer “may be in possession, custody or control of documentary material, or may have knowledge” of a suspected violation. Likewise, our laws require the CID’s requests (for documents, etc.) to be related to the OAG’s investigation. CIDs are not intended to authorize unlimited requests for records unrelated to the matter at hand.
What Should Your Company Do If It Receives a Civil Investigative Demand?
Perhaps most importantly, a CID is not self-enforcing. If a company objects to a CID or declines to comply, the Attorney General must petition a court to compel compliance. At that point, a judge will determine whether the CID was properly issued and whether the requested information should be produced.
That does not mean employers should ignore a CID. Instead, companies should promptly take steps to protect their interests. If your business receives a CID, contact legal counsel, preserve potentially responsive records, carefully review the scope of the requests and evaluate whether those requests are reasonably tailored to the investigation.
The practical takeaway is this: receiving a CID does not mean your company violated SEA 76. Rather, it is the beginning of a legal process that includes important procedural protections for employers, including judicial oversight. Understanding both your obligations and your rights will help your business navigate that process confidently and appropriately.
NOTE: The Indiana Chamber is in the planning process to hold a webinar on this matter in the near future. Stay tuned for details and we look forward to helping you navigate this.
