This is a complicated mess that may take a while to sort out. Start with a vet visit. If he has a bladder infection, no amount of training will help. Also have him neutered if not already.
You can buy grids to go in the crate, but they are expensive and hard to find. I have used cheaper alternatives. The closely space closet shelving I used for years fell apart a year ago with my last puppy. I picked up stacking kitchen bin and drilled holes in the bottom to start Holly a month ago. She actually only had one accident in her crate, doing very well. The grid does not solve the problem, it only makes it easier to cope with plus introduces the dog to staying dry.
Any puppy over 2 months should be making it over night. Usually by that time, they are OK half the day too. My wife or I have always been able to make it home at lunch to give the puppy a break mid day. If that is out of the question, you need to look at alternatives, having a neighbor or a professional dog walker give him a break. Another alternative is doggy day care. This could be a big help allowing him to stay dry and clean all day. With his housebreaking problems, it may be hard to find a day care to take him. I doubt you will be able to fix the problem if you are leaving him all day in the crate.
I see many similar questions. It sounds to me like the dog is doing it deliberately to protest being left in the crate. That is at odds with the conventional wisdom. However, many dogs don't seem to have read the parts about avoiding fouling their sleeping area. Dogs see all the people and dogs in the household as a pack with each having their own rank in the pack and a top dog. Life is much easier if the 2 legged pack members outrank the 4 legged ones. You can learn to play the role of top dog by reading some books or going to a good obedience class. A good obedience class or book is about you being top dog, not about rewarding standard commands with a treat. Start at http://www.dogsbestfriend.com/
Here are some other things you need to be doing to take over as top dog, http://www.dogbreedinfo.com./topdogrules.htm
The top dog has the right to leave the lower status one confined when it isn't around. The neutering I suggested goes a long ways to reducing challenges to your status.
The best answers come from people that have had successful experience solving the problem. My 10 week old Lab Holly is the 15'th small puppy I have housebroken since 1991. I never had any problems with them fouling their crate except right at first. I meet monthly with others doing the same, and none of them ever bring up such a problem. If you do a search here, you can see where I have given the same advice to other people in the past. Unfortunately, nobody seems to post back saying what if anything worked. About 6 years ago, my daughter had a problem at first with a little terrier mix. A grid plus her experience with being top dog quickly took care of the problem.
In addition to the above you need to follow good housebreaking practices. Forget the pads, they only confuse the issue. Forget schedules too. Learn to read him as explained below.
Housebreaking starts before you get home with the new puppy. If you don't have
A crate, buy one. I prefer the more enclosed, den like plastic ones. Skip the
Bedding. At first it gets wet, and later it can be chewed into choking
Hazards. A wire rack in the bottom will help keep the puppy up out of
Accidents at first. They are available with the crates, but a piece of closely
Spaced wire closet shelving from a home supply place is cheaper. If you
Already have a metal crate, covering it may help. Just make sure you use
Something the puppy can't pull in and chew. Dogs that start out in crates as
Little puppies, accept them very well. Never leave an unattended puppy loose
In the house. If nobody can watch it, put it in the crate. I suggest letting
The dog have its crate all its life.
Choose a command and spot you want it to use. The less accessible to strays,
The less chance of serious disease. If it is a female, choosing a
Non grassy spot will avoid brown spots later. When you bring it home, take it
To the spot and give it the command in a firm, but friendly voice. Keep
Repeating the command and let the puppy sniff around. If it does anything,
Praise it. Really let it know what a good dog it is and how much you love it,
And maybe a treat. Note, being out there not only means you can praise it,
But it also keeps it from being snatched by a hawk. If it doesn't go, take it
Inside and give it a drink and any meals scheduled. A young puppy will need to
Go out immediately afterward. Go to the spot and follow the above routine.
Praising it if it goes is extremely important. If it doesn't go, take it back
Inside and put it in its crate and try again soon. Do not let it loose in the
House until it does go.
At first it is your responsibility to know and take the puppy out when it
Needs to go. It needs to go out the first thing in the morning, after eating,
Drinking, and sleeping. If it quits playing, and starts running around
Sniffing, it is looking for a place to go. Take it out quickly. You will just
Have to be what I call puppy broke until it is a little older.
By the time most dogs are about 3 months old, they have figured out that if
They go to the door and stand, you will let them out. The praise slowly shifts
To going to the door. Some people hang a bell there for the dog to paw. If
Your dog doesn't figure this out, try praising it and putting it out if it
Even gets near the door. A stern "Bad dog!" is all the punishment that is
Effective, and only when you catch it in the act and are sure you didn't miss
It going to the door. Clean up accidents promptly. I mostly keep the little
Puppies out of the carpeted rooms. Still I need the can of carpet foam
Sometimes. First blot up all the urine you can with a dry towel. Keep moving
It and stepping on it until a fresh area stays dry. A couple big putty knives
Work well on bowel movements. Just slide one under it while holding it with
The other. This gets it up with a minimum of pushing it down into the carpet.
This works with even relatively soft ones, vomit, dirt from over turned house
Plants, or anything else from solids to thick liquids. Finish up with a good
Shot of carpet foam. Note, do not let the puppy lick up the carpet foam.
Once the dog is reliably housebroken, your carpet may need a good steam cleaning.
Many people strongly strongly push cleaning up all evidence of past accidents. I am slower to suggest that. Dogs will return to the same spot if they can find it. When you see one sniffing the spot, that is your clue to run it out.