Does a corporation legally have to tell its employees if the manager is stealing from them or can they just pay you what is owed and never tell them?

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Does a corporation legally have to tell its employees if the manager is stealing from them or can they just pay you what is owed and never tell them?

The manager was cutting off hours of worked time to guarantee his bonus and the corporation knows and they paid the employees for what was taken but do they have to tell them what it is for?

Asked on May 7, 2012 under Business Law, Maine

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I believe that the corporation owes the employees full disclosure about what happened and what the payments are for, so the answer is yes.  It would be tantamount to a cover up.  And I think they have an obligation to prosecute the manager.  Good luck.


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