- An internal investigation into the Covington Public Works department uncovered time fraud among some of its employees.
- The workers would clock each other in and trade small monetary favors. When confronted, some workers said the practice was widespread.
- The city said it was making changes to avoid the problem in the future.
An internal city investigation carried out in the latter parts of 2025 uncovered that at least six employees at Covington Public Works, including some supervisory staff, either engaged in or enabled the falsification of timecards, according to documents obtained by LINK nky.
Public records detailing the city’s investigation revealed that employees engaged in a practice called “buddy punching,” in which they clocked each other in when they were running late, which is disallowed under city policy.
Although the HR Department concluded there was “no evidence to indicate that the practice is widespread amongst the entire Public Works Department,” the investigation culminated in several reprimands and the resignations of two employees.
The documents, obtained via public records requests, offer insight into the city’s investigative processes, but they also prompt other questions about the culture and general practices of municipal departments, as well as power structures within city governments.
The buddy punch
One of the investigative documents from early September shows how city staff members cross-referenced camera footage with timekeeping records to see if timecard falsification was going on.
Timecards labeled with hand-written discrepancies, as well as emails between Public Works managers, appear in this document. Blank resignation templates append its final pages.
Another document summarizes the findings of HR Manager Michael Webster, who had interviewed a worker named Bruce Scruggs in late September about possible time falsification. During the interview, Scruggs said he allowed another worker, Marcus Hill, to clock him in when he was running late.
Text messages collected by the HR Department show how workers – Scruggs, Hill and others – would ask each other to clock in when running late. Other employees in the department interviewed also attested to a so-called “sight-line” rule, where employees would clock each other in if it was clear they were headed into work. Several employees indicated that Scruggs and Hill were frequently late.
Additionally, the employees who engaged in this practice would sometimes dole out small electronic payments, often a dollar or two, as recompense for clocking each other in. Receipts of these payments appear in the HR Department’s investigation documents.
By Webster’s telling, Scruggs seemed taken aback that he had been pulled into an interview about the practice. The same day, Hill admitted to being party to the clock-ins, and “both employees alleged the practice was long-standing and culturally accepted,” according to Webster’s report.
Hill and Scruggs then named several of their co-workers, as well as a supervisor, who allegedly did the same thing, or at the very least enabled it. They also provided the text messages and receipts. Scruggs and Hill alleged that a supervisor, Clifton Troy McCain, “participated in or condoned the practice,” according to Webster’s report.
McCain denied the allegations, but one employee stated that “improper time keeping had been common for years and alleged [McCain] sometimes adjusted timecards or instructed others to clock in late employees,” according to the investigation summary. A former temporary employee corroborated that this had happened during previous seasonal employment periods when contacted.
Of those investigated, the department was able to substantiate improper time-keeping practices for six employees: Scruggs, Hill, James Payne Sr., James Payne Jr., Ryan Gribble and Daniel Dixon. The report goes on to state that evidence collected suggested that “Troy McCain either permitted, had knowledge of, or should have known of such improper conduct.”
Records show Dixon was reprimanded in October. Everyone else, including McCain, was reprimanded in November. Scruggs and Hill would both resign by the end of the year.
Changes
Mayor Ron Washington declined to comment, however a city representative issued a statement to LINK nky, the entirety of which you can read here.
“While the City does not comment on the specifics of personnel matters, the review led City Management to implement corrective and preventative measures aimed at strengthening oversight and reinforcing clear standards of accountability across the department,” the statement reads. “As part of those efforts, City Management made structural changes to better align leadership responsibilities with operational and long-term needs.”
Details about the investigation process and the subsequent reprimands are unclear from the documents themselves. For instance, on Oct. 6, former Public Works Director Keith Bales wrote an email to the city manager and higher-ups in the HR Department, admonishing them to finalize the terminations of Scruggs and Hill and referencing a “potential reversed dismissal.” For reference, the HR Department did not tender its investigation summary until Oct. 14.
In his email, Bales makes reference to the HR Department’s worry about a potential Equal Employment Opportunity complaint, “specifically allegations of racism” (Hill and Scruggs are both Black). In spite of this worry, Bales writes, “the City must [emphasis his] proceed with termination.”
Indications of this potential reversal are not referenced elsewhere in the response to LINK nky’s records request, but it’s clear that there were meetings, both within the city departments and with union reps, going on throughout the time the correspondence was being produced.
Bales was later moved into a new role, director of Strategic Investment Initiatives, in December. Bill Matteoli, former assistant director of Public Works, was moved into the director’s position at the same time.
LINK nky has reached out to the AFSCME union office in Louisville to connect with a local rep in Covington for comment and additional information.
The original version of this story referenced an internal document the City of Covington has since said it gave to LINK nky in error. That document included an employee reprimand that the city said had never officially been delivered to the employee. This story has been edited to reflect this information.
Anyone with more knowledge about this situation who wishes to share information can contact news@linknky.com to speak to a reporter. Anonymous tips are welcome.