Ethical Issue

[Christ's Free Servant]

I went to work for this H/AC company about six weeks ago. The owners are going on vacation next week to Florida and are putting me in charge while they are gone. Last Monday the woman who is training me trained me on payroll. She told me that any hours the technicians worked over 40 are paid to them in cash. I said, "Isn't that illegal?" to which she replied, "Yes, but it works better for them and for us." I was upset about this but took a couple of hours to think it over and pray over it and talk it over with my husband before I responded. I went back to her after lunch and told her that I could not participate in any illegal activity. Then she said it was not illegal. She said that the technicians claim the cash payments on their taxes at the end of the year as though they are subcontractors.

Now, I took two semesters of Business Law and one semester of Payroll Accounting this past year at our local technical college, and I know that it can not be for the benefit of the employee to have to claim the cash payments as though they are subcontractors at the end of the year, because they would have to pay both their SS tax and Fed In TX plus they would have to pay the employers' portion of both of those. So, at the least, I knew she was lying to me.

Then, I decided to check it out with the government. She told me that another employee (previous) had turned them into the Dept of Labor for illegal activity (which I'm surprised she told me that) but that they were cleared of all charges. So, I decided to contact the Dept of Labor to see what they could tell me. They gave me the numbers for the Fed Dept of Labor and the Dept of Revenue. Since they said the Dept of Revenue handled cash payments, I contacted them first. They said that what my employers were doing was illegal, but they also told me to contact the Internal Revenue, so I did. They told me that a person can not be employed by a company and self-employed and working for the same company at the same time. They told me that what they are doing is illegal.

One other thing - we sell Freon. I know how much we charge for Freon, but I am not allowed to quote the price over the phone. I have to tell the customer that we don't quote the price over the phone because if we do work on their system the price could be lower, but still they want to know what we charge by the lb for Freon if that is all that is required and still I am not permitted to tell them even though I know, because they are afraid that the customer will go to another company, because our company charges more than anyone else. So, I have to try to talk the customer into letting us come to their house to see what the problem is first, and then we'll tell them how much it costs for Freon. I feel this is being deceptive. Do you?

Anyway, it is quite clear to me that I can not work for this company, but they are depending upon me to work for them while they are on vacation this coming week. If I know they are doing what is illegal and I have to do payroll while they are gone, even if no one has worked over 40 hours, would you continue to work for them while they are gone and quit when they get back or would you quit now? And, would you give a notice? I mean, even if I tell them I quit, should I agree to work for them while they are on vacation if I know that what they are doing is illegal? I have always given a two week notice. If they are cheating and lying about it, though, do I have an ethical responsibility to give them a two week notice? Help!

[Constant]

It seems to me that you are in a little bit of a pickle! You are in charge while they are on vacation and that is a duty you have to carry out. If it makes you feel really uncomfortable, I would quit. It is wrong and illegal and if you continue with it, you could be caught and get into trouble. It could happen. Protect yourself and don't worry about what they think of your work ethic. As far as a notice goes, if you stick it out there til they get back from vacation, and let them know what they are doing isn't right and that you are giving your notice, they might fire you right there because it is making them look bad by you pointing out their problem.

Go with what your heart is telling you to do. Leave your worries uo to the Big Man!

[Kansasdad]

Giving a two week notice is something you agreed to do when you were hired, ( it is not a legal obligation but it is an ethical one) but the company also agreed not to do anything illegal. They have breached the agreement, and you are no longer obligated to an agreement they have violated. If you give a two week notice, do it now and tell them exactly why you are giving your notice, and inform them that if you are left in charge over the weekend you will not engage in the illegal practice and you will process the payroll according to the law, and yes she was lying to you. They are avoiding having to pay overtime, and the technicians are probably not reporting it as income. This is not a company you want to work for.

God Bless,

Kansas Dad

[Work in Progress]

Wow, this is really tough. I'm sorry you are in such a position.

I wouldn't make any rash decisions. Especially keep in mind your credibility - you will probably end up looking for another job and you don't want your resume to say you walked off another job with no notice. No matter what explanation you give, your future employee will know it is only one side of the story and all they will look at is the time - not reasons.

I would probably give them the two weeks notice right away and say why. Sorry that they are counting on you while they go on vacation, but it's hard to have sympathy for cheaters. And think about it - they are putting an employee in charge who has been with the company for six weeks. Something is not right about that. Obviously they have a high turn over. Gee, wonder why? LOL. I doubt it will be a shock when you give your notice. And why can't the lady who is training you take over while they are away?

As for the freon thing - unfortunately that is the kind of business practice of many businesses- "don't give out too much info on the phone and reel 'em in" - I don't have any respect for that, but it's not breaking the law, they are just crummy, unscrupulous people I guess. They are not on the "up and up" - the stress of working there will be very hard - you can do better.

BTW, I thought the public could no longer buy freon?

I hope all goes well for you!

[traveller]

Surely they don't know that you went to the DOL and the IRS? I would think they wouldn't want you to be in charge if they knew that!

Honestly, are they about to be audited by either? Are the field agents coming out? Or did you do it anonymously?

At any rate, I'd find another job. Now. Illegal is illegal. If you're uncomfortable, it's probably the leading of the Holy Spirit.

[Trust & Obey]

Sue, I understand your predicament.

First off: You don't "owe" anyone "notice" when you leave a company. It is a nice courtesy to offer, but it is not required. Ask yourself this... if they were to fire you do you think they would give you 2 weeks notice? Probably not.

Regarding the payroll thing... the company is trying to get out of paying Social Sercrurity, payroll, and other taxes (SSI, FICA, etc).

I would not be the crutch for this company while they are gone on business. Tell the lady who trained you that she needs to do payroll because you don't agree with the practice.

Regarding the freon issue. Just tell the person on the phone that you are not allowed to disclose pricing over the phone. That's straightforward, honest, and to the point. The customer is going to wonder "why" and will probably figure your company to be dishonest, which it is, but that is not a reflection on you.

Trust and honor God at work, like you are doing, and He will provide another job that is in keeping with godly principles.

[Trust & Obey]

Wow, this is really tough. I'm sorry you are in such a position.

I wouldn't make any rash decisions. Especially keep in mind your credibility - you will probably end up looking for another job and you don't want your resume to say you walked off another job with no notice.

Don't list this company as a reference on your resume. Simple.

[Christ's Free Servant]

Well, this is my sixth week on the job and I missed a whole week when I had that virus, so I've only technically worked for them a little over 4 weeks. They are leaving this Saturday to go on vacation, so if I give a two week notice, that would mean working for them while they are gone. The owners are a man and woman who live together outside of marriage. He has been married twice before and she has been married once before. He is kind of an abusive type and she is the typical abused female scenario. She is the one training me and she is going on vacation with him and their children. They don't know I have called anyone, but I will tell them tomorrow. My heart is telling me to leave immediately, but I want to make sure that I am doing the right thing. Yes, they breached their contract with me by doing what it illegal and then lying to me about it. It will be a huge responsibility for me to run their business for them while they are gone after only having had five weeks of training and wouldn't I be participating in wrong doing if I run the illegal business for them while they are gone? Remember, they are leaving this Saturday - 4 days from now, so I have to make a decision tonight how I am going to approach this with them tomorrow. So, pray for me ok???

[Trust & Obey]

Hey Sue, I'll pray for ya!

BTW, I can't believe they'd let a 6-week employee run their business. That kind of shows their level of responsibility and level-headedness, IMO.

[Kansasdad]

Honestly I think you should just get out today. but that is only my opinion. But bear in mind that I almost universally have advised all employees to always give a two week notice. If I am interviewing an applicant I expect them to give their employers a two week notice, so I do not take this lightly, I think this is one you should run from, get away from it, it is only poison. I will pray for you Sue, and do whatever God is calling you to do!

God Bless,

Kansas Dad