Someone I know is a supervisor, but not allowed to do anything to reprimand her staff, because the staff member she supervises is the daughter of the company's owner. The office manager and all other staff are complaining about the staff member sleeping in the office instead of working, showing up late, leaving early, not completing tasks assigned to her, etc., but the supervisor is still not allowed to reprimand the staff member.

The staff member has now complained to the owner of the company, aka..mommy, that her supervisor is mean and she no longer wants to work with her supervisor. As a result, the supervisor's hours are being cut so that the staff member no longer has to work at the same time as her supervisor. Is this legal?