If a salaried employee lets his boss see him when he comes into the office early, then when out of sight sips coffee and relaxes until his coworkers arrive, is

If a salaried employee lets his boss see him when he comes into the office early, then when out of sight sips coffee and relaxes until his coworkers arrive, is that also fraud? If you caught one of your employees doing that, would you call the cops and report him for fraud?