A publication of the National Association of Theatre Owners

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What To Do When Officials Stop By
Government Inspection Checklist
by Steven John Fellman
NATO Washington Counsel

Whether you operate a large chain or a single screen, you can be sure that every year you will be visited by various government inspectors. With a little advance preparation, you can make sure that your company is in the best position to defend itself and get a positive inspection report.

Motion picture theatre facilities are inspected by various state and federal officials. Local fire inspectors or building code officials periodically show up to make sure that you are meeting local code requirements. State Occupational Safety and Health Administration (OSHA) or wage and hour officials may come in to make sure your workplace is operated in a safe manner and that your younger employees are working within the limits of the state law requirements and are being paid in accord with both federal and state wage requirements. The Federal Trade Commission may send shoppers to your theatres to see how you are complying with the rating system. Consumer groups representing local disability rights advocates may visit your theatre to determine if you are complying with federal and state disability rights laws and accessibility requirements.

Most of the federal and state inspectors will identify themselves when they arrive at the theatre door. Others, such as the FTC shoppers and the disability rights groups representatives, will buy a ticket and start looking around the theatre to find out whether you are meeting current practice requirements.

Although each federal or state agency has different authority, every exhibitor should adopt some standard operating procedures on how to deal with government inspectors. These operating procedures are simple to implement and will be extremely helpful to the company in the event that the inspector finds some violation of the laws or regulations for which he or she is responsible. Here are some steps we recommend every exhibitor take.

1. Training the Staff. As part of the basic training for each staff employee, they should be taught that whenever an inspector shows up at a theatre or a person appears to buy a ticket and start “nosing around,” the manager or assistant manager on duty should be contacted. Normally when a state or federal inspector arrives at the facility, he or she will identify himself/herself to the person at the front door, show a symbol of authority such as a badge, and ask for access to the facility. Every employee should know that when an inspector arrives, the employee should immediately alert the manager or assistant manager on duty. The employee should allow the inspector to enter the lobby but ask the inspector to wait until a manager or assistant manager arrives before proceeding further. Don’t make the inspector stand out in the cold or the rain. At the same time, the inspector should not be allowed to begin the inspection process until the manager or assistant manager arrives.

2. Training the Manager or Assistant Manager. Every manager and assistant manager should be trained on the company policy for dealing with inspectors. At a minimum, when the inspector arrives, the manager should prepare an inspection report. The manager should ask the inspector to show his or her credentials and then write down the name of the inspector, the name of the agency, the address of the agency, the telephone number of the inspector, and ask the inspector the purpose of the visit. You are entitled to know the purpose of the inspection. If the inspection is the result of a complaint, the inspector usually will not identify the complainant. This information should be included in the inspection report.

3. Authorizing the Inspection. Most federal and state agencies are authorized to conduct inspections of facilities covered by their regulations during normal business hours. However, unless the inspector has a subpoena, you have the right to take reasonable steps to ensure that the company’s interests are protected. The theatre manager or assistant manager should have specific written instructions detailing the steps to follow when an inspector arrives at the theatre. Typically, these steps would include:

a. Recording the date and time that the inspector arrived;
b. Recording the name, address and telephone number of the inspector;
c. Recording the purpose of the visit as stated by the inspector;
d. Recording whether the inspector had a subpoena or not;
e. Recording what the inspector indicated that he wanted to inspect;
f. If the company policy requires calling the home office prior to letting the inspection begin, the manager or assistant manager should call the home office and follow home office procedures:
(1) Some companies may have a designated person at the home office who will want to talk to the inspector;
(2) Other home offices may want to know of the inspector’s arrival prior to the time any inspection begins and then, after consultation with the theatre manager, authorize the inspection;
(3) Some home offices may try to reschedule the inspection at such time when a representative from the home office can be on the premises.

4. Conducting the Inspection. If the home office – or your standard operating procedures – permit the manager to go forward with the inspection, the manager should accompany the inspector during the entire course of the inspection. Make notes of what the inspector does. Only some inspectors are entitled to talk to employees. If the inspector in question is not entitled to talk to employees, do not permit such discussions. If the inspector is from the health department and wants to sample popcorn or some other concession item, ask the inspector to share his sample with you so that you can have an independent analysis done if necessary. You should share all samples taken of anything.

5. Records. Some inspectors are entitled to see certain records. Other inspectors are entitled to see other records. Generally, the theatre manager will not have comprehensive records on site. If the inspector wishes to examine records, the manager should advise the inspector that records are maintained in the corporate offices and give the inspector the name of a person at the corporate office to contact. We would not recommend that the manager provide the inspector with any records unless specifically authorized by the company standard operating procedure to do so.

6. Reasonable Cooperation. Many inspectors have found that if they use aggressive tactics they can get access to almost anything at a business office or facility. Often, they seek to obtain access to information, files or records that they are not entitled to obtain. If a manager or assistant manager has any question with regard to a proposed course of action that the inspector is pursuing, he or she should ask the inspector to stop and call the corporate offices. Cooperation does not mean that you need to give away the store.

7. A Manager’s Checklist. We recommend that managers and assistant managers be given a written checklist and inspection form to use while an inspector is present. No matter how well your manager has been trained, he or she will be nervous during the course of the inspection and may forget something. A written checklist and a written form to fill out during the course of the inspection is definitely a benefit to both the manager and the company.

8. Minor Fixes. If the inspector is looking for things such as safety violations, code violations, or ADA violations, he may find some minor violations during the course of the inspection and report such violations to the manager. As an example, the inspector could walk up to the box office and see that the sign that would indicate the availability of assistive listening systems is not posted. Assume that there is such a sign sitting in the manager’s office but it was taken down for some unknown reason and, through inadvertence, was not replaced. Upon being notified that there is no such sign present, the manager should inform the inspector that the sign had been in place but had temporarily been taken down and the manager should get the sign and replace it while the inspector is standing there. In a similar manner, assume that an OSHA inspector notices an electrical cord on the floor that poses a tripping hazard. The manager should remove the cord while the inspector is standing there. If a bulb is out on an Exit sign, the manager should call a maintenance person and have the bulb replaced while the inspector is there.

9. Getting an Inspection Report. Some government agencies will provide an inspection report immediately after the inspection concludes. The inspector will finish the inspection, fill out a form and hand it to the manager. The manager should make sure to ask for a copy of an inspection report. If the inspector does not provide one at the end of the inspection, the manager should ask the inspector if he found any problems and note the problems on the manager’s own inspection report. If the inspector says that he is not authorized to disclose his findings but that the agency will contact the company at a later date, the manager should note that also on the inspection report. In such an instance, the manager should ask the inspector whom the company should contact if they need further information regarding this particular inspection. If the inspector does provide an inspection report, the manager should read the report while the inspector is present. If the manager disagrees with any of the findings, he should so advise the inspector. If the manager believes that certain violations reported have been corrected during the course of the inspection, he should ask the inspector to note that fact in the report. The manager should report the details of his conversation with the inspector at the end of the inspection as part of the company inspection report.

10. Reporting to the Company. As soon as the inspector leaves, the manager should forward a copy of any documents left by the inspector together with the manager’s inspection report to the person designated at company headquarters to deal with inspection issues. If problems were found, the manager should work with the company home office to eliminate the problems as quickly as possible. In appropriate instances, company lawyers should be consulted.

Implementation of a program as outlined above is inexpensive and yet essential. It is surprising that many companies do not have such programs. Such companies often wonder why they get involved in more regulatory proceedings than their competitors. A company with a good inspection program will minimize its risk of spending unnecessary time and money dealing with regulatory agencies.