Expert Advice: What to Do When an Employee Is Caught Stealing Follow these three steps to ensure you handle a tricky money situation with sense.

Q: How do I fire an employee who was caught stealing?

A: Joyce Margulies, a Memphis, Tenn.-based attorney and chair of the American Bar Association's Section of Labor and Employment Law, says entrepreneurs need to do their due diligence before firing anyone, especially if it is an employee of long standing. She recommends these steps.

1. Investigate: Conduct the necessary detective work, including interviewing the accused. "In a case of termination," Margulies says, "the decision-maker should not rely on the reports of others."