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Can An Employee Provide Outside Services

Anonymous
(CFO) | Dec 3, 2013

We have a situation where an employee is offering to make a video of a company event and charge a fee. The Company could hire an outside videographer but the employee's work is just as good. This is not the employees primary work responsibility. We also have a situation where another employee is offering to bake cakes (really nice ones!) for a fee for company events on their own time. Quantity would be 1 per event and events are a few times a year. Is this allowable in California? Could it be deemed a conflict? Other thoughts?

Answers

Anonymous User
Profile
Title: CFO
Company: Local Government Agency
(CFO, Local Government Agency) | Dec 3, 2013

Keep any such activities as the employee earning wages in compliance with wage law. CA & the IRS, won't see it any other way. So, pay them for the extra mile but, do so within the confines of the employment relationship.

And, as much as I love home baked cakes, your legal counsel will most likely tell you that the liability of this arrangement is too great. I know ours does. Even pot lucks make him nervous because, the company becomes the deep pocket should someone claim damages from food poisoning or some such tort.

Also, especially in CA, the state that loves to regulate everything, paying for those cakes outside of an inspected bakery facility could easily run you and the preparer afoul of county and/or city health laws.

I know, I know. It all seems ridiculous and extreme. But in CA, that's the way things are. :-(

Anonymous
(CFO) | Dec 3, 2013

Those reasons are enough to not do this. Thanks! Not worth the potential headaches.

Marie Ridall
Profile
Title: Director of Human Resources
Company: AlignAlytics
(Director of Human Resources, AlignAlytics) | Dec 4, 2013

Why does a Liberal environment like California make people feel so restricted. Seems like everyone (especially in Human Resources) must check with the "thought police" before doing anything. So don't get your employees to do anything other than their job, hire an outside videographer and bakery. What happens when your employees get resentful, won't cooperate with the videographer and won't eat the cake?

Anonymous User
Profile
Title: CFO
Company: Local Government Agency
(CFO, Local Government Agency) | Dec 4, 2013

Welcome to California!

Just an FYI: When it comes to "everyone else", most liberals are anything but "liberal". It's their way only. They want control over everyone and everything. Law and the respective regulations is the easiest way to do this.

"We know what's best for you!".

Just an observation from someone old enough to have been a Hippie. ;-(

Topic Expert
Patrick Dunne
Profile
Title: Chief Financial Officer
Company: Milk Source
(Chief Financial Officer, Milk Source) | Dec 4, 2013

I echo the sentiment of running this through payroll. Don't consider it a hassle as you are protecting the employee and the company from future liability.

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