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Jul05

Time Fraud Laws in New Hampshire

One of my par-timers got caught on camera 2 times clock in at work and right away leaving the building. She came back 7 minutes after. I want to know what would be the right procedure on this issue, called in my company “Time Fraud” and what is the regular procedure or alternatives to sort out this situation. Especially because she is a good employee and she is good at her job. Thank you,

Under New Hampshire law, employers are required to maintain true and accurate records of all hours worked for all employees. Additionally, under federal law, specifically the Fair Labor Standards Act (FLSA), it’s the employers responsibility to ensure accurate records of hours worked are kept for non-exempt employees.

Neither law requires or specifies what disciplinary action should be taken against an employee who falsifies time records. Such actions are at the discretion of the employer.

Since it’s ultimately the employer’s responsibility to ensure accurate documentation of employees’ hours worked, it’s important for employers to adopt a time-keeping policy to include disciplinary actions for violations.

Some companies consider time fraud as theft of wages and will immediately terminate violators. However, progressive discipline is also acceptable. Progressive discipline provides a graduated range of responses to employee misconduct. So, offenders may receive a verbal warning at first, then a written warning for subsequent violations, then suspension, and ultimately termination.

Meet with the employee to discuss the issue. Maybe she has a legitimate reason for her actions. Even if so, her actions absolutely call for a verbal warning, at the very least. Inform her of the time keeping policy, your expectations for her to be honest in all matters of employment and that continued violations will result in further disciplinary action including termination. Make sure she understands the severity of the issue.

In the future, consider adding the consequences for violators to your time keeping policy. Doing so informs employees that you take time fraud seriously and will not tolerate willful violators.

This entry was posted on Sunday, July 5th, 2015 at 8:00 pm and is filed under
Labor Laws, Workplace Management.
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