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Oh wow. No, no one in any of my past jobs has done that so this is the first time I'm hearing of it. Let us know what your company decides to do.
Are you at a large firm? And how bad was the "padding"? billable hour pressure at large firms im sure can cause this
How did they figure out she was doing that?
There's always a company snitch. Someone always watching so they can report to management. Reminds me of the movie, 9 to 5, when Roz would hide in restroom stalls with her feet up, taking notes on toilet paper.
Funny thing is that those same snitches wouldn't be whistleblowers because they don't want to lose their job. Also funny is that the company snitch would be shocked when the company lays them off because the snitch thinks they're immune.
How did you find out about it?
Yes, they were fired. It’s fraud
Have seen multiple people fired over this over my career. And it’s one if the quicker ways to get fired. Usually younger employees who don’t realize it will be super obvious to the biller. And it’s usually once they’re already heading down the slippery slope of not meeting their hours or not being able to turn in good quality work, so they do it to make up for that, feeling the pressure.