Alabama Private Investigator Practice Exam

Is an individual involved in an internal investigation within their own company required to be a licensed private investigator (LPI)?

1. Yes

2. No

3. Only if the investigation involves legal matters

4. Only if they are not a company employee

The correct answer is: No

An individual conducting an internal investigation within their own company is not required to be a licensed private investigator. This is because internal investigations typically fall under the purview of the employer or designated employees who are acting in an official capacity to address issues such as misconduct, policy violations, or compliance concerns. Employees who are tasked with such investigations often use the information available to them as part of their role and do not engage in investigative activities that would require a private investigator's license. Licensing requirements for private investigators are generally applicable to those who perform investigative services for clients outside of their employer-employee relationship. In this context, the distinction between internal investigations and those that require licensure is important, as internal investigations deal with matters directly related to the company itself and its employees, rather than external cases that would involve third-party clients or public interests.