While it could be legitimate, it could generate more grief than it's worth.  Many places allow an employee to earn "bonus" or "extra service" pay for doing work beyond their job description during hours they would normally not work.  The grant dollars would be used to pay this as a single lump sum or in installments through the organization with normal taxes withheld but not the benefits which presumably are covered through the regular paychecks.

This extra payment would be the same amount as the contract so if the contract would have paid her substantially more than her normal hourly amount, she isn't getting burned by option 1.

It is also temporary so after the contract work is done the organization isn't locked in to the higher amount of option 2.

Sandra Guy, MS, CRA
Research Administrator
Edward Cancer Center
120 Spalding Drive, Suite 111
Naperville, IL  60540
Phone 630-646-6174
Fax 630-646-6110

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@lists.healthresearch.org] On Behalf Of Gauhar Nguyen
Sent: Saturday, July 20, 2013 6:07 PM
To: xxxxxx@lists.healthresearch.org
Subject: [RESADM-L] employee and contractor

Dear all,

I am hoping for the collective wisdom to either set me or the situation straight.

Situation: An org. has a grant. They hired a contractor to support certain functions. However, the contractor didn't work out. So they went separate ways. Meanwhile, an employee, who is paid by the org. general funds, not by the grant, said that she can do it. She really can do it. However, she is 100% on the general funds. The org. went and signed a contract with her, so she can come on the weekend and do things for the grant. The contract under the grant is for 10-15 hours a week (weekends). I had all kinds of bells and flags going on in my head. But I can't seem to find any regulations that refers to an employee being a contractor at the same time for the same org, but being paid from different funds. Am I wrong to have the Pacific Tsunami Warning going on in my head? Could someone maybe point me to any reg? I think it also goes into the org. HR manual.

Solution: The employee is hourly. She can charge the overtime. So I was thinking of 1. Putting her as on the grant as an employee (10 or 15%) and the rest is paid by the general funds. If she is going over her 40 hours, she can charge overtime to the general funds.

or

2. The org. is thinking of switching her to non-hourly, giving her a raise, and putting on the grant as an employee (10-15%) and the rest is paid from the org fund. If she has to work over 40 hours, she still gets paid the same increased amount.

Is there a better solution? They can't hire another person right now, since the extra hours won't warrant a part-time employment and would require a specialized set of skills, which they didn't find in the contractor before (so they let the contractor go).

I would appreciate all and any advice and guidance. I do not wish to burn the employee for doing the work. However, I would like the org. to formalize the relationship and work properly.

Thank you, Gauhar

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 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.healthresearch.org (click on the
 "LISTSERV" link in the upper right corner)

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