Question:
I’m a small business owner and trust my employees. The majority are great. In the past two years, I’ve actively sought ways to reward them for hard work and keep them motivated. When our amazing summer began in May, I shortened our workweek to four days at least through June, giving every employee a guilt-free Friday off.
I manage based on an honor system, and don’t tightly monitor employees as long as they get their work done. Our team thrives and appreciates the flexibility they’re given -- except for “Jacob,” who’s my lowest performer and yet claims he works regular overtime for which he’s “not compensated.” Since he has a high salary and is in a professional position, I’ve felt forced to remind him that exempt employees often work over 40 hours in exchange for higher wages than hourly employees get and the ability to take off an occasional hour or two during the workweek for a doctor’s appointment or other personal issue.
Because of out-of-town guests, I used a day of paid leave last Wednesday and drove to Seward. We walked along the harbor and through the Harborside Campground. Imagine my surprise when Jacob’s dog ran up to us to play with my Lab. I asked a woman at nearby RV, “Do you know this dog?” and she said, “Oh, that’s Jabob’s dog, Jolly.” She then told me her dog played daily with Jolly and pointed out Jacob’s RV. I went there and knocked on the door, surprising Jacob. He tried to cover what he’d been doing, saying he’d just driven down a few hours ago, but it was clear by looking at his campsite that he’d been there more than a few hours.
Do you see any problem with my firing him? He’s worked for me for three years and I now suspect he’s regularly shorted me on work hours. It burns me he’s complained he’s worked overtime hours without compensation. Also, he threatened me during our conversation that he could sue me for unpaid overtime. Do I need to change how I manage and monitor more tightly?
Answer:
Your question is timely. A Harris Poll released June 18 revealed 48% of U.S. employees admitted to undisclosed vacationing on past July Fourth weekends.
“Quiet vacationing” -- employees hiding vacation excursions from employers -- has surged since the pandemic, with four out of every 10 millennial employees admitting in an April 2024 survey they take time off from work without telling their managers. About 38% of those 500 employees moved their mouse to give the impression they were working. Of the total 1,170 employees surveyed, 37% of the millennials and 31% overall scheduled a message to send after work hours to make it appear they were working overtime.
Some commentators report quiet vacationing results when employees lack paid time off or fear managers will “mark them down” for using all their paid time off. While employees without vacation benefits and those working for rigid employers may feel a need to sneak vacation time, Jacob lacks those excuses.
Given Jacob’s threat, you’ll want to run this situation by an attorney who can evaluate whether Jacob’s position is truly exempt or hourly. You’re not the first employer to have an employee who regularly works less than 40 hours weekly sue for unpaid overtime. Also, ask your attorney whether Jacob can claim “wiggle room” under the flexible guidelines you give your other employees. I also hope you recorded the name and contact information for the woman who said her dog plays with Jacob’s dog daily, so you can prevail in any claim Jacob potentially makes that you’ve unfairly fired him.
Finally, I hope the attorney says you can fire Jacob before his problem ethics lead you to tighten the flexibility you provide other employees.