If compensation is found to be fraudulent, what should the employer do?

When compensation is found to be fraudulent, the appropriate course of action for the employer is to reimburse the system in full. This aligns with legal and ethical standards that govern employment and compensation practices. Fraudulent compensation not only indicates a violation of trust but also implies that the funds were improperly acquired, which can have serious implications for the integrity of the compensation system.

Reimbursing in full is necessary to rectify the wrongdoing and to ensure that the integrity of the compensation framework is restored. This action helps to reinforce the importance of accountability within the organization and demonstrates a commitment to ethical practices. Collecting the full reimbursement is also essential for regulatory compliance and can protect the organization from potential legal penalties or further financial repercussions.

Other options such as paying a fine or reimbursing only half of the benefits do not adequately address the severity of the issue, as they do not ensure full accountability for the fraudulent actions. Taking no action would further undermine the ethical and legal standards required of employers.