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Flexible Schedules at Work

I work in a small office with just a handful or co-workers.  One of my co-workers is late–almost every day.  She frequently will go shopping and run errands on company time and then report on her time card as having worked.  I am working in the Financial Services area and feel that this is other people’s money being mis-used.  The boss is a long-time friend of this co-workers father and the boss is frequently out on business trips and doesn’t see this happening. We have a very flexible work schedule and we are all salaried but I feel that this co-worker is taking advantage of that.  I am considering speaking to my boss about this but also wonder about any ramifications.  Any ideas?

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