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sub-contracting for current employer

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I have a legit side business doing web design. My present company (different dept) hired this "side business" to do their web site. The side business was used specifically to avoid conflicts with my regular assigned duties. Payments are made to the business, not to me directly.

Now our CFO is screaming about conflict of interest, labor regs and illegalities, and looking to end my side services or force them inside my normal duties. Quality of work and cost are not an issue.

If the side business is legit, and totally separate from my normal duties, is there really a problem here? Do I have any recourse?

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