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CHARLOTTE – Alcohol Law Enforcement is investigating whether the Flying Biscuit Cafe in South Charlotte broke any laws in connection with the murder of one of its employees.

"This is an ugly public relations situation for them," said Kenny Colbert, head of The Employers Association.

When Colbert first heard about the deadly stabbing of manager Danielle Watson at the Flying Biscuit Cafe two weeks ago, it raised a number of red flags.

“The first thing that popped in my mind is had they done a criminal background check and did they know this person's background?" he said.

Not only because the suspect, Mark Anthony Cox, worked there, but also Colbert said because the 22-year-old is a two-time felon working in an establishment that serves alcohol.

In 2010 Cox was convicted of breaking and entering and larceny in Wake County. He also served time for armed robbery in Halifax County. That record prompted Alcohol Law Enforcement to launch their own investigation.

Under North Carolina General Statute 18B-1003, a permittee – in this case the restaurant -- cannot knowingly employ in the sale or distribution of alcoholic beverages any person who has been, convicted of a felony within three years.

But Colbert added, "In reading the law it appears that this gentlemen would be able to wait tables and serve soft drinks, sweep floors and things like that as long as he was not serving alcohol.”

The other issue – whether managers at Flying Biscuit did a criminal background check before hiring Cox.

Owner Hugh Bigham released this statement: "During the interview process,Cox acknowledged a previous conviction. He was given a chance and initially hired on a trial basis."

Nowhere in North Carolina's general statutes does it say a business has to do a criminal background check, with two exceptions in the case of health care and child care.

But Colbert said it just makes good business sense.

"If you hire someone who has a shady background and they come into your workplace and they commit a similar offense you could be charged with negligent hiring,” said Colbert.

If the ALE finds Flying Biscuit Cafe violated alcohol enforcement laws, it could be fined or have its liquor license temporarily revoked.