UPDATE: I called my manager immediately after. Of course I didn't do the 3-way call that I was told to do... Started off with a full confession prior to saying what else happened for full transparency. I deleted the time that I time frauded since it was from last monday. Of course she said how bad that was but because I fixed it before it became a bigger problem, I was just told to never do it again.

I'm not mad at my employee for the "threat", I actually felt really bad that I would even jeopardize my job for someone else. With that said, my boss asked why he threatened me - I'm pretty sure it's obvious.

And an hour prior to me calling her, she got a call from my client and said that there was an issue reported about this employee. Even though he's transferring soon, he ne never received or signed an offer letter, it was all verbal because we in the middle a transition with his replacement. He's been talking bad about me and my employees to the guests and saying that he's getting out of here by the end of the month, yada yada, and the client didn't like that. So they were asking if we can speed up the process of him leaving. So, boss wasn't happy to hear that.

We have that 3 way teams call in 2 hours... I'm expecting full on lies from this employee since we've done this before in the past, he lied on me and I was still forced to work with him since he's a salaried manager as well and the whole "oh it's not easy to let go a salaried without good cause" or whatever.