I have a new employee (about 1 months old) who records all of her time outside of her timesheet. She works more than the allowed time per pay period and has been told that we don't do comp time or overtime that folks flex their schedules out. She in turn told our CFO she understands that but continues to document her time. I feel like a situation will come up where she claims she's being overworked or deserves more money..

Pl advise.
 

Is this person non-exempt or exempt? I am not sure what you mean by "FLEX THEIR SCHEDULES OUT."

I suggest you have another conversation with her and tell her she is violating company policy by working more than what her assigned hours are. Failure to conform to company rules, policies, etc., will result in termination.

You must pay her for all hours worked or risk owing treble damages when the ruling goes against you...provided she files a claim, that is.