...companies and their officers don't get arrested for stealing from employees?
Officials at Toys "R" Us, Family Dollar, Pep Boys, Wal-Mart and Taco Bell say they prohibit manipulation of time records, but many acknowledge that it sometimes happens. "Our policy is to pay hourly associates for every minute they work," said Mona Williams, vice president for communications at Wal-Mart. "With a company this large, there will inevitably be instances of managers doing the wrong thing. Our policy is if a manager deliberately deletes time, they're dismissed."
Compensation experts say that many managers, whether at discount stores or fast-food restaurants, fear losing their jobs if they fail to keep costs down. "A lot of this is that district managers might fire you as soon as look at you," said William Rutzick, a lawyer who reached a $1.5 million settlement with Taco Bell last year after a jury found the chain's managers guilty of erasing time and requiring off-the-clock work. "The store managers have a toehold in the lower middle class. They're being paid $20,000, $30,000. They're in management. They get medical. They have no job security at all, and they want to keep their toehold in the lower middle class, and they'll often do whatever is necessary to do it."
Another reason managers shave time, experts say, is that an increasing part of their compensation comes in bonuses based on minimizing costs or maximizing profits. "The pressures are just unbelievable to control costs and improve productivity," said George Milkovich, a longtime Cornell University professor of industrial relations and co-author of the leading textbook on compensation. "All this manipulation of payroll may be the unintended consequence of increasing the emphasis on bonuses."----more----
http://www.nytimes.com/2004/04/04/national/04WAGE.html(free registration required)