Employee working extra undocumented hours

:help: We are a public employer who may offer comp. time. I just found out that an hourly employee in one of our offices has been working 40 hours or more per week but only claiming 20. ACK!!!!!!! I am trying to figure out where to START to fix this! (Please, I beg you, don't say go to our attorney. I AM the attorney!) I don't think this employee has kept track of all her hours either.

Okay, so our state doesn't have many employment laws at all, and I have those covered, so my question are more general/federal.

Can we offer comp time alone for all the extra hours? Or, do I have to offer a mixture of comp and pay? I can't even begin to fathom what to do if this woman worked overtime in excess of 40 hours per week! Please, any advice you can offer would be most appreciated!

I first plan on sending a letter to her and her supervisor telling them that she must be compensated in some form for any work she performs. I also need to clarify in no uncertain terms that any additional time she works is NOT volunteerism, as she tried to claim. (She's doing her exact same job in the exact same office.) I will ask if they have records of her extra hours worked. What then?

To add to this mess, we offer state retirement benefits and insurance eligibility to anyone who works over 20 hours per week. How do I handle that, and retroactively to boot?

Again, please help. I truly would appreciate any advice our great gurus on these forums can offer!

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