I have sort of a moral dillema. I have an office job with two other people. One of them I am the supervisor of but do not 'sign their paycheck'. Instead, I simply make sure they have work to do and stay on track. It is expected of me that I make sure that projects get done, meaning I must make sure they come in when they say they will and are productive.
Note: This job allows employees to make their own hours. This means that employees are expected to come in when they say they will. The manager who would be my direct supervisor does not enforce this rule so it is taken advantage of. We will also enter in all of our own hours and they are approved by the manager. This allows for employees to be dishonest if they wish.
Enter the second employee. I have not officially been told that I am their supervisor, however, their initial job title has transformed into the job title of the employee that I do supervise. This is not official but everybody knows it (once again bad management). This employee has a set schedule (that they created) but does not follow it. They come in between 2 and 3 hours late everyday. Since they come in late they supposedly stay later (according to the time entries) but we dont know because we work a normal 9-5.
However, this employee does enter time as if they arrived 30 minutes to 1.5 hrs earlier very frequently. I can see it in an approved and processed state. They also leave for hour lunches but do not mention them in their time entry (no paid lunch).
This employee is logging approximately 3 hours in some cases more than they actually work per day and getting paid for it.
What should I do?