Hathaway retired from UConn in September after Susan Herbst, the school's new president, ordered an outside review of his handling of the department.
In order to remain on the basketball committee, Hathaway must be employed by an NCAA member school or conference. Hathaway was hired on Monday as a consultant for the Big East.
Under terms of his separation agreement, Hathaway's Big East salary will be deducted from his nearly $700,000 salary at UConn.
UConn spokesman Mike Enright said Friday the school has received a letter from Hathaway's attorney detailing the $1 salary.