This paper explores how group membership and voice type influences loyalty perception and punishment severity of misconduct within a managerial setting. Misconduct is a universal constant across all organizational settings, and management’s punishment in response can be influenced by an array of factors where some transgressors are punished more severely than others for similar types of misconduct. However, existing literature is ambiguous on whether management’s perception of a transgressor’s loyalty explains why some employees are punished more severely than others. Expanding on current theories of loyalty and punishment, we theorize that loyalty perception depends on two factors: group status (specifically in-group status by team association places clear expectations of loyalty to the group) and employee voice type (specifically, speaking up to challenge existing managerial practices is a deviation of expected behavior in organizational settings). The results for these analyses will add value to existing research on loyalty and managerial punishment, and will provide useful contributions to managerial efforts in handling unethical behavior. The study did not reveal a main effect of employee group status on punishment recommendation, but it did reveal a main effect on employee group status on loyalty perception; of employee voice type on loyalty perception; of employee voice type on punishment recommendations, and of employee voice type on loyalty perceptions and punishment recommendations of in-group employees.