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the subject are interpreted by the examiner. It is, therefore, the

interpretation of the examiner which determines whether the subject passes or fails the polygraph test.

A brochure published by the American Polygraph Association states, "In laboratory role-playing experiments, with reasonable attention to motivation, research psychologists have achieved accuracy of over 80 per cent" in the use of polygraph tests. Some polygraph examiners claim an accuracy of 90-95

percent.

However, what do these claims really mean?

Researcher Peter Holden

of Wichita State University clarifies the matter when he points out, "if 95% accurate, a machine testing 1,000 people--25 of whom are lying--will detect 24 of the 25 liars; but among the remaining subjects it will erroneously identify 49 honest people as liars. If only 90% accurate, the polygraph would

misidentify 98 of those guiltless subjects as liars."

While these figures may please corporate employers, to those 98 innocent people turned down for employment and branded as liars the result is an inexcusable injustice. If the research results of 80% accuracy reported by the American Polygraph Association are accurate, the injustice is

substantially greater.

These figures are from research conducted with

qualified examiners. How low would those accuracy figures go with the use of

poor quality examiners?

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If questions of the accuracy of polygraph testing aren't enough to ban their use in the workplace, use of polygraph tests also raise profound constitutional and invasion of privacy issues. Even if the polygraph test were 100% reliable there are still serious questions about invasion of privacy, violation of the Fourth Amendment protection against unreasonable searches, of the Fifth Amendment protection against self-incrimination, of the constitutional presumption of innocence until proven guilty, and of the Sixth Amendment right to confront and cross-examine one's accusers.

Although use of polygraph tests may appear to reduce an immediate problem it creates other and far more significant problems than property loss. In our view, this threat to human values outweighs any arguable benefits to the use of polygraph testing.

The American Pharmaceutical Association urges the Committee to report favorably S. 1815 and to prohibit the use of polygraph testing in the

workplace. We suggest that polygraph proponents use other more reliable loss prevention techniques. Many are available and they should not be put aside for mere reasons of expediency.

Thank you for the opportunity of providing this testimony.

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The American Retail Federation is an umbrella organization representing the 50 state retail associations, some 30 national associations and corporate retailers, large and small. In all, we represent over one million retail establishments which employ nearly fourteen million workers.

The American Retail Federation wishes to state once again our unequivocal opposition to S. 1815 as presently drafted, while we recognize the need for balanced and effective legislation in this area. The bill as currently drafted would preclude our retailing members from utilizing the polygraph examination as one in a series of tools for determining a worker's eligibility for employment. Moreover, retailers would be unable to polygraph current employees as a part of investigative techniques upon an incidence of theft or fraud. The retailing community sustains through employee theft a loss of merchandise estimated to be more than forty percent of inventory loss. Nationwide employee pilfering is costing American retailing billions of dollars each year. These losses inevitably raise the cost of goods and services to the consumer. In an effort to minimize these significant losses retailers utilize polygraph tests along with other security procedures to ascertain an applicant's honesty or to investigate major internal shortages. It is the experience of our members that the prudent use of polygraph examinations has proven to be very useful in curbing this critical problem. We believe that retailers have a right to implement reasonable procedures, including carefully selected and administered polygraph examinations to help protect against theft.

We, therefore, respectfully urge that you and the members of your Committee examine the issue of polygraph application carefully

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The Honorable Orrin G. Hatch

April 30, 1986

and reconsider the effect of S. 1815 upon retailing, a major sector of the business community.

Mr. Chairman, we thank you for your consideration of our point of view.

JPO:asl

Sincerely,

Joseph P. O'Neil
President

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James N. Alkinson, CPP

Johnson & Johnson

New Brunswick, New Jersey
Vice President international
Shirley J. Krieger, CPP
Sperry Corporation
Phoenix Arizona

Secretary/Treasurer

Donald J. Murphy, CPP Puget Sound Power & Light Company

Bellevue, Washington

Chairman of the Board Darlene T. Sherwood, CPP SRI International Menlo Park Califomia

DIRECTORS

Joseph G. Deegan, CPP Balmore Gas & Electric Company

Baltimore Maryland

Clifford E. Evans, CPP

Navistar International Corporation

Chicago ncis

Brian R. Hollstein, CPP

Xerox Corporation
Stamford Connecticut

William R. Martin, CPP

GTE Midwestern Telephone Operations

Westfield, Indiana

George J. Murphy, CPP
Bose Corporation

Framingham, Massachusetts

Carl G. Newby, CP
Levi Strauss & Co
Knoxville, Tennessee

Richard S. Post, CPP

American Can Company
Greenwich Connecticut

Joseph P. Reynolds, CPP

Sanders Associates, Inc
Nashua, New Hampshire

James I. Royer, CPP
FMC Corporation
Chicago, Illinois

Herman C. Statum, CPP

Business Risks international
Nashville Tennessee

Raymond R. Stommel, CPP

Troy Michigan

Robert L. Stromberg, CPP

General Telephone Company of

the Southwest

San Angelo, Texas

Charlene Y. Taylor-Derry, CPP

Federal Aviation Administration
Anchorage, Alaska

Oliver O. Wainwright, Sr., CPP

SCM Corporation

New York, New York

April 23, 1986

The Honorable Orrin G. Hatch

Chairman, Labor and Human

Resources Committee

428 Dirksen

U.S. Senate

Washington, DC 20510

Dear Mr. Hatch:

Thank you very much for your kind letter of April 11, 1986 indicating
that due to the large number of requests to testify on polygraph
testing in the workplace, it would not be possible to honor our request.
Please find enclosed a copy of our statement outlining this society's
position with respect to Senate Bill 1815. Your assistance in having
this statement considered as part of the official hearing record
and having it reviewed by the committee prior to markup of the legis-
lation will be greatly appreciated.

Thanking you again for providing us with the opportunity to address an important matter of concern to our membership, I remain,

Sincerely,

E.J Criscuoli,

Executive Vice President

Enclosure

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