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Paying an employee 'on the side'
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Paying an employee 'on the side'
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
One of our departments in our company is General Contracting/Construction. For whatever reason, we paid an employee a serious of checks to remodel our office building. This is what he is employed by u
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Forums » Topic Forums » Legal Forum » Paying an employee 'on the side'
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Paying an employee 'on the side'
posted at 9/12/2011 3:45 AM EDT
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Posts: 17
First: 6/4/2010 Last: 9/14/2011 |
WOW, I truly appreciate ALL of your help. I agree with your comments and have started looking for another job. Thanks so much, I think that was the push I needed. It's been like this for too long.
Thanks again. |
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Paying an employee 'on the side'
posted at 9/12/2011 4:48 AM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
Just to be clear. Finding a new job is a great idea, but.......... make sure you do all the documentation sugggestions above regardless. This could come back and bite you long after you are gone and you will need this record of events for protection.
BCCing to your personal account the note you send is a great idea. |
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Paying an employee 'on the side'
posted at 9/12/2011 4:31 PM EDT
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Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
You might want to remind your employer that the penalty for violation of wage and hour laws is triple the amount of legitimate wages not paid for the previous 2 years. And there is a very strong possibility that the wage and hour folks will audit the pay of all your hourly employees for that period to uncover anything else.
Or you can make notes of all these little side deals and report this company to the Wage and Hour people yourself when you leave. |
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Paying an employee 'on the side'
posted at 9/13/2011 4:18 AM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
Personally, given the facts so far I would not "remind" them about anything. The wife is a lawyer and is sure she knows best about everything. No sense hasten the leaving process any faster than you have to.
Just find a new position as soon as possible and then report them. Just make sure that there is "cover" through your notes and protection under the whistleblower act. You may need your own legal counsel on this matter. |
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Paying an employee 'on the side'
posted at 9/13/2011 8:06 AM EDT
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Posts: 378
First: 1/8/2002 Last: 9/14/2011 |
The other posters have covered the wage and hour issues superbly. Krispy, the company basically treated this guy like an independent contractor. Since he did the work on his own, it is very possible under Michigan law that he was required to possess a contractor's license, insurance, bonding, and more. Just a thought.
As the others encouraged, I would get the heck out of Dodge and find an employer that has integrity and accountability. |
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Paying an employee 'on the side'
posted at 9/14/2011 4:13 AM EDT
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
How lkong have you been with your current employer? If quite a while, you could just say you're looking for a change...or are there big differences between your current employer and the prospective employer? You could say you prefer to work in a larger/smaller company, larger/smaller HR department, different industry...if you go this route, make sure you have some good reasons lined up for why you want such a different employer. (For example, if the new one has a bigger HR department, say you want more opportunities to learn HR stuff from peers and colleagues.) |
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Paying an employee 'on the side'
posted at 9/14/2011 4:31 AM EDT
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
If you have only been there a short time you might say that the owners ahve indicated that they really do not to make any changes to big the function to a "more modern" state (you decide how you wish to describe more modern, e.g. better use of technology, updating pay scales, upgrading performance management systems, etc.) Thus you will become stagnant in your profession and the company will be less attractive to candidates............. |
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