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Wage theft is a serious thing. That 5-10 minutes does add up. My bigger concern would be what happens if somebody else started doing that? You make them face consequences, but not the ‘best’ worker.
If I was the manager, I would elevate the behavior to the next level.
Idc if he’s the best worker, it’s time theft. He needs to stop manually adjusting his time. Set the expectation for him to clock in and if he continues to do it manually, have another more serious conversation. Document the infractions, it may need to lead to a write up later on.