Bullshit. As a consultant, if I'm productive for 3 hours in an 8 hour day, I charge 3 hours, maybe a little more if it was due to context switching. According to this article, this woman admitted to falsifying hours and the repayment was in part due to the frivolous lawsuit she brought after being fired for falsifying timesheets, which is literally criminal fraud. She got off way, way easy. The "tracking software" sounds dangerous and stupid but in this case it sounds like it got one right.