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About Margie deMarteleire
Expertise
FLSA White Collar Exemptions, payroll issues, final paycheck law for all fifty states, some state wage & hour laws

Experience
I am an FLSA Analyst at a large staffing company. I see exemption requests all day long. I am also an attorney, although as I am sure you know, I will not be giving legal advice.

Education/Credentials
BA Communications, Temple University, Summa Cum Laude, Phi Beta Kappa JD, Temple University School of Law, Magna Cum Laude Certificate in HR, Cornell University ILR Department

You are here: Experts > Jobs/Careers > Human Resources > Human Resources > Compensation for services performed for "sister" company

Human Resources - Compensation for services performed for "sister" company

Expert: Margie deMarteleire - 11/4/2009

Question
I work in PA as the business manager for a (for profit) health care services agency. I started in September of 2007 and am a salaried employee with an annually renewable (although, to date, un-signed) contract (but that is a separate question entirely).

In March of 2008, I was instructed to begin performing administrative duties for one of the agencies "sister" corporations, a 501(c)(3) non-profit agency. These services where to be performed in addition to my regular workload under my contract, however, no compensation for the additional services was paid. Over the past year and a half, the "required" duties for the non-profit agency have grown, and although compensation has been requested, only a single "bonus" check (covering approximately one month's worth of hours worked) was paid. The excuse has continually been that the non-profit agency cannot afford to pay the administrative salaries, so we are basically "donating" our time to that agency and it is covered under my contract with the for-profit agency.

There is nothing written in my contract stating anything about duties or responsibilities to the "sister" corporations.

As a side note, one of my responsibilities for the non-profit agency was the preparation and submission of invoices to a state government agency for reimbursement through a grant program - invoices which included reimbursement for administrative salaries.

Please tell me if this is legal and if there is anything I can do about the situation.

Thank you.

Answer
Brian - Your question raises more than one issue. The core question is whether you are being deprived of any money or benefit as a result of what is happening with the nonprofit work. Unfortunately, the answer is no. Salaried employees must be paid their weekly salary for work performed in the workweek, whether it is more than or less than 40 hours of work. Without a signed contract, you are expected to do whatever your employer asks of you. That is why most job descriptions are open-ended, to preserve the employer's right to add duties. If your workweek has been increased significantly, you are within your rights to ask for an increase. You have little negotiating power, however. It is within the discretion of the employer.

Your next question, is whether it is legal for the nonprofit to claim the cost of your work in its financials. Nonprofits are permitted to claim the value of donated services in most of their reports, although it should be noted as donated services. I am not clear enough on what the terms of the grant are to say whether they have violated a rule or law. Ordinarily, however a nonprofit provides services obligated through a grant is acceptable, but terms vary. It seems that this nonprofit is important to your employer. It may be the wiser course to leave this issue alone, although that can only be your decision. If you treat this as value you have brought to the company and its affiliate, you may have a winning argument for the raise you want.

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