Salaried Worker Who Embezzled Money Must Also Repay For Time Not Worked

Although on salary, a worker that embezzled money from her company must also repay for time that would have been spent working in addition to money that was stolen

United States v. Tadios, 2016 BL 157858, 9th Cir., No. 14-30231, 5/18/16.

    The Ninth Circuit now joins the Second Circuit view that salaried employees should  be required to repay their employer for time not spent working when employed in addition to amount owed after embezzling an employer’s funds. The court took into consideration that “by failing to claim or deduct annual leave…[the defendant] harmed clinic twice over: first, by getting the clinic to pay for travel expenses it had no obligation to cover, and again by getting the clinic to pay her salary for time she was supposed to be working but was not.”

   The circuit court affirmed the district court’s calculation of multiplying employee’s estimated hourly rate by the number of hours she should have taken as annual leave. In applying this to salaried workers, defendants can no longer claim that a place of employment does not suffer compensable loss because she was a salaried worker entitled to full pay regardless of travel or vacation time.

http://www.bloomberglaw.com/public/document/United_States_v_Tadios_No_1430231_2016_BL_157858_9th_Cir_May_18_2