Comment Re: Overemployment is not illegal (Score 1) 34
Exempt employees are not paid by hour - they don't get overtime but also you cannot substract for undertime. The whole point is they are hired for the role/job not for hourly output, and as long as they do the job its fine.
You can fire the person for not doing the job, but this is true whether you took 4 small jobs and stretched too thin or you took 1 big job and underperformed.
If he did not lie and did not share confidential data (e.g. outsourcing his job) this not a problem of fraud, this is a problem of lack of accountability for HR / Recruiting (checking references) and managers (supervising the output). Either that or the guy is effective enough to do the work compared to his peers, and then the question is whether they are offering the right job for that skill level.