salaried employees with full-time jobs elsewhere

dd

Our company has recently undergone a sale of one of its divisions, which has affected one of our employees in a rather unique way. Though she is now considered a full-time employee of the new company (with whom we maintain no affiliation), she continues to work for us on special projects left unfinished prior to the close of the sale. She is paid by us as a salaried employee, but is not entitled to benefits, as she does not maintain a 30-hour work week (minimum required to be considered full-time); however, I'm wondering if this is the best way to handle the situation and if it's (gulp!) legal. Any in-put whatsoever would be greatly appreciated.

Dorie

The classification of the position as salaried (exempt) should be based on the functions of the job and the FLSA. Get back to basics and do a job description for these new functions and see if it meets the criteria for an exempt position.

santire

The best way to handle the work of a person that is actually the employee of another company and is needed by you on a part time basis is to pay her as a consultant and thereby eliminate the entire question of how to deal with an exempt employee. The consultant arrangement would work because she is, as you said, doing only part time work. Of course the question arises as to whether she is being treated as an employee - given directions as to how to do her work, has mandatory hours, etc., in which case under IRS rules you need to give consideration to the nature of the relationship. Frequently, when one company takes over a target company or division, former employees of the former company or division, particularly former managers and professionals, do follow up work as consultants to the new business arrangement.