Law360, New York (January 26, 2010, 2:16 PM ET) -- Many companies prudently seek to nip employment issues in the bud by conducting prompt and thorough investigations. In addition to investigating at the first sign of a possible complaint, more proactive employers routinely audit their wage and hour practices and personnel policies to ensure compliance and limit liability.

In doing so, corporations and their counsel often rely on the premise that communications relating to the investigation will be protected by the attorney-client privilege.

As “one of the oldest privileges for confidential communications,” the attorney-client privilege historically...