Message-ID: <31653133.1075863723872.JavaMail.evans@thyme> Date: Wed, 28 Jun 2000 02:04:00 -0700 (PDT) From: michelle.cash@enron.com To: kathryn.mclean@enron.com Subject: Re: CALME JV & Consultants Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Michelle Cash X-To: Kathryn McLean X-cc: X-bcc: X-Folder: \Michelle_Cash_Dec2000\Notes Folders\Sent X-Origin: Cash-M X-FileName: mcash.nsf Here is another opinion to support my earlier thoughts. Michelle ------------------------------------------------------------------------------ --------------------------- Michelle Cash Enron North America Corp. 1400 Smith Street, EB 3823 Houston, Texas 77002 (713) 853-6401 michelle.cash@enron.com This message may contain confidential information that is protected by the attorney-client and/or work product privileges. ----- Forwarded by Michelle Cash/HOU/ECT on 06/28/2000 09:03 AM ----- Sharon Butcher@ENRON 06/27/2000 08:23 PM To: Kriste Sullivan/Corp/Enron@ENRON, Michelle Cash/HOU/ECT@ECT cc: Subject: Re: CALME JV & Consultants Dear Michelle: I agree with you and Kriste. I thought we put this issue to bed several years ago. Consultants and Contractors are to be reviewed, if at all, by their respective employers. If the Consultant and/or Contractor is not an employee of a third party employer, then Enron has the right to determine if they are meeting the terms and provisions of their contract. However, this does not mean they are to be included in the PEP and PRC process. To include them opens too many doors with respect to the proper classification of these individuals. If we treat them like employees, we may find that a court determines they should be employees and thus eligible for all employee benefits, a la MicroSoft. Thanks. Sharon 06/27/2000 02:33 PM Kriste Sullivan Kriste Sullivan Kriste Sullivan 06/27/2000 02:33 PM 06/27/2000 02:33 PM To: Michelle Cash/HOU/ECT@ECT cc: David Oxley/HOU/ECT@ECT, Gina Corteselli/Corp/Enron@Enron, Kathryn McLean/HOU/ECT@ECT, Sharon Butcher/Corp/Enron@Enron Subject: Re: CALME JV & Consultants I agree with your recommendation Michelle that consultants and contractors should not participate in the PRC or the PEP process. If you treat consultants and contractors like "employees", they will soon become them in the eyes of the law, along with all of the costs, bonuses, and benefits. Kriste K. Sullivan Enron Corp. Legal 1400 Smith, EB 4861 Houston, TX 77002 (713) 853-7557 (713) 646-5847 Fax KSulliv@Enron.com This message may contain confidential information that is protected by the attorney-client and/or work product privileges. Michelle Cash@ECT 06/27/2000 01:03 PM To: Kathryn McLean/HOU/ECT@ECT cc: David Oxley/HOU/ECT@ECT, Gina Corteselli/Corp/Enron@Enron, Sharon Butcher/Corp/Enron@ENRON, Kriste Sullivan/Corp/Enron@ENRON Subject: Re: CALME JV & Consultants Privileged and Confidential -- Advice Covered by the Attorney-Client Privilege K2: I have copied this email to Sharon & Kriste, who are supporting the CALME region. My recommendation is to exclude contractors/consultants because their inclusion would increase the risk that they would be deemed to be employees, and that a court could determine that they are owed employee compensation and benefits (a la Microsoft). This exposure could be high. Depending on the other indicators of independent contractor status, rating them along side our employees could be a factor to tilt the balance. Let me know if you have any questions. Michelle ------------------------------------------------------------------------------ --------------------------- Michelle Cash Enron North America Corp. 1400 Smith Street, EB 3823 Houston, Texas 77002 (713) 853-6401 michelle.cash@enron.com This message may contain confidential information that is protected by the attorney-client and/or work product privileges. Kathryn McLean 06/27/2000 10:01 AM To: Michelle Cash/HOU/ECT@ECT cc: David Oxley/HOU/ECT@ECT, Gina Corteselli/Corp/Enron@Enron Subject: CALME JV & Consultants Hi Michelle, Please see my note below regarding including JV employees and Consultants in our PEP system and the PRC. Could you please give us more expert legal advice (from my own : - )!!) in relation to this? We want to ensure that we cover ourselves. Thanks, K2. ---------------------- Forwarded by Kathryn McLean/HOU/ECT on 06/27/2000 09:51 AM --------------------------- Kathryn McLean 06/26/2000 09:12 AM To: David Oxley/HOU/ECT@ECT cc: Gina Corteselli/Corp/Enron@Enron, Janie Bonnard/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Chris Cockrell/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Monica Cale/HOU/ECT@ECT Subject: CALME JV & Consultants David, I've been forwarded a voicemail on Friday from David Haug where he has requested that we include CALME's JV employees and Consultants who are at the VP level. (He knows that they should not be pulled into the VP meeting). Monica and I initially pushed back on this due to the requirement that only AIP employees are involved in our mid year process, however, due to David's instance I'm reverting to you for a decision. Although I do not have a strong opinion on including the JV's - my concern is primarily with the Consultants. Below are my concerns in accommodating this request:- - The PEP system has officially told employees that the feedback stage has finished. Although the system is still open we are going to turn off the system message requesting reviewers to access PEP to review employee. In this instance, there would need to be an effort within Janie's team to communicate to all reviewers of the JV's that they are required to give feedback. - The way PEP is set up, we would need to load the consultants as employees in order to generate the 360 feedback functionality. Due to US law on how to describe employees/non employees in a database, this comes with legality issues and I want us to be aware of what we're doing regarding this. Call me to discuss or if you wish for me to forward the voicemail, K2