There is an employee where I work believes she is in charge of everything and demands others to tell her everything about their work.
This includes what each employee earns, which I feel is none of her business.
Whenever we have meetings, she interrupts anyone who is talking and tells them to keep quiet because they are wrong and making fools of themselves.
She wants everything done her way even if it has nothing to do with her job. She will argue and shout if you don’t listen.
She constantly monitors the security cameras to spy on everyone. If she see someone talking to one of the bosses, she races out to barge in on the meeting so see can listen to everything being said.
HERE’S THE REAL KICKER!
She is buddy buddy with the big boss (got that way through flattery not merit) and lies to him about everyone. He believes her and has fired a few employees because of her lies.
She is now telling him to fire me and my friend and she will get him 2 employees who are better workers (her friend whom she controls).
We have worked here for over 20 years, while she just started 8 months ago.
HOW WOULD YOU HANDLE THIS?
What is the best way to catch her red handed doing all these things?
Everyone is fed up with her.
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If your company is large enough to include an "HR" or human resources office, you and your co-workers should report this co-worker’s behavior, but do refrain from using terms like "psychotic" unless you are a qualified mental health professional. Present incidents of her disrupting meetings, interfering with production and upsetting the bulk of your department and HR personnel should contact your boss and the offending employee in a private meeting. Stay calm and stick to the facts, using accepted business language rather than offering an accusatory or belligerant stance.
You and your co-workers could also write and sign a petition/complaint to your supervisor and outline how she is interfering with your "company mission." Get as much back up and testimony as you can on this. Another less proven and probably riskier tactic would be for all of you to exit the meeting en masse and report back to your stations for work and perhaps the boss would get the hint.
If she and your boss are "romantically involved," it will be harder to get her off your back because he is going to believe her over the rest of you. You do have the recourse of going "over his head" and reporting to his boss, but that could also jeopardize your jobs. Contact your local state unemployment office and see if someone there can counsel you before you quit or get fired. If you all quit at once, you can all file for unemployment compensation at once because this out of control employee is indeed causing a "hostile workplace," situation which is an acceptable reason to quit and recieve benefits, but 20 years with the same firm is really not something you want to throw away like that. Work together, plan your strategy and you could win. You all also can "put her on ignore" by not responding to any of her comments or in any way address her if she does not outrank you. Do not flatten her tyres in the parking lot or take any overt steps against her that ould put you in a bad light.
You mention she monitors the security cams, which to me says your firm is large enough to include an HR rep, and your best chance would be to contact her/him at once as a body.