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Arbitrary discharge?

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Title: Arbitrary discharge by government agency?

Can a government agency use/receive what they know is stolen property
to terminate one employee and not discipline the other employee who they know committed the theft? The agency acknowledged in a hearing document that the theft had taken place. There would not have been any type of termination action had the theft, (which is a violation of written organization policy) not taken place. Can a government agency be selective about which rules/policies they choose to enforce?

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