layoffs and consultants
hr_dawg
1 Post
[font size="1" color="#FF0000"]LAST EDITED ON 07-05-01 AT 03:03PM (CST)[/font][p][font size="1" color="#FF0000"]LAST EDITED ON 07-05-01 AT 03:03 PM (CST)[/font]
I work for a large company with plants all over the US. An exempt management employee in a different state at a plant undergoing layoff who is not my direct subordinate has shown extraordinary skills and I would like to continue to use him in other functions around the company. He has already undergone layoff. Unfortunately, my current funding structure prohibits my adding a full time employee right now. What are the wage & hour ramifications of contracting with him on an as needed basis to provide consulting services? I plan on paying him in flat rate services contracts that, in effect, compensate him at a higher daily rate...
I work for a large company with plants all over the US. An exempt management employee in a different state at a plant undergoing layoff who is not my direct subordinate has shown extraordinary skills and I would like to continue to use him in other functions around the company. He has already undergone layoff. Unfortunately, my current funding structure prohibits my adding a full time employee right now. What are the wage & hour ramifications of contracting with him on an as needed basis to provide consulting services? I plan on paying him in flat rate services contracts that, in effect, compensate him at a higher daily rate...
Comments
If you are his only clent and the only one he has ever had, it starts to look shakey. Especially if he does not carry his own performance liability and workers comp. insurance. Will he perform all of his work on Company premises and under some supervision? In an IRS audit, they look closely at employees who terminate and suddenly appear as ICs.