Nested ARes models

I have two ARecord models, Company and Employee, that are both serviced by RESTful controllers. I want to create a nested ActiveResource-based front end that makes calls on this RESTful interface. In my front-end client routes.rb I have

map.resources :companies do |company|   company.resources :employee end.

Then in my client company.rb model, I have

class Company < ActiveResource::Base   self.site = "http://localhost:3000" end

and in employee.rb

class Employee < ActiveResource::Base   self.site = "http://localhost:3000/companies/:company_id&quot; end

How do I create and save a new employee instance?

With

@company = Company.find(1)

I've tried

employee = Employee.new(:name => "Jeff", :city => "Portland", {:company_id => @company.id})

But I just get a compile error. I don't see what's wrong.