Can't legally dock them an hours pay...other than that I agree with your approach. Document the discussion in case other problems arise and this employee needs to be let go. Put a copy in their personnel file.
Do I sound like I've had a little bad experience with employee issues??? Why do you think I work as a one man show now?
In most small businesses the employer is far more loyal to the employees than they are to him/her. Most employees are excellent at making you think they respect and appreciate all that you do for them, but if the walls could talk and you really heard how they felt...I always felt I had an open door policy and people could come in, sit down and privately talk about any issue. Employees are afraid to openly discuss much with their employers and are excellent at covering up many issues.
The more employees and locations with several management levels the worse it is. Employees always believe you are making so much money off their backs even if in reality the business is failing and you are giving them Christmas bonuses out of your retirement savings.
Most employees have never been in business for themselves and have no idea how thin the margin is aftger all costs are considered. I had a smart, good working employee who, after 14 years of employment with me doing everything from purchasing to retail management state in an employee meeting that she thought the business netted 40 cents on every dollar of gross revenue after all costs are considered including COGS. I know what I said above is redundant, but I wanted to emphasize that she did understand the question. If we did $ 1,000,000.00 in sales that year, she thought the business netted $400,000.
Wow!
If you try to explain that a successful retail operation actually may make 1-3 cents on each dollar of revenue and a manufacturer 8-12% with more risk...or that supermarkets make anywhere from 1/4-1/2% of gross sales...they'll nod and walk away still not believing you. Don't even try to explain inventory turns, ROI, fixed and variable costs, depreciation, etc.
Amazingly, most employees also know how to run your business better than you do...maybe ignorance is bliss!
I apologize if I sound jaded, but I "am what I am and that's all that I am!".
Toot toot!
Dave Makielski