Leader hypocrisy erodes trust, morale, and customer interactions, straining leader-employee bonds. While its link to negative behavior is established, its effect on employees’ internal states remains underexamined. Therefore, drawing on the stimulus-organism-response and trait theories, this study investigates how employees’ perception of leader hypocrisy affects their altruistic behavior via interpersonal distrust. Data were gathered from 485 frontline employees in North Indian restaurants over two time periods and was analyzed using R Studio and SPSS. Results showed that perceived leader hypocrisy led to a decline in altruistic behavior among employees. The study also confirmed the mediating effect of interpersonal distrust and the moderating influence of agreeableness. This study is an attempt to broaden the frontiers of hypocrisy research, and it provides critical insights into the understudied process of employee perception of leader hypocrisy and employees’ altruistic behavior with interpersonal distrust as a mediator.
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