diff --git a/Bakefile b/Bakefile
index 86addcf..a0f909f 100644
--- a/Bakefile
+++ b/Bakefile
@@ -7,6 +7,11 @@ build() {
     echo "copy dist/ to six9.net/py/qgpg/"
 }
 
+setup_useve() {
+    set -e
+    . useve-runner
+    useve mk qgpg
+}
 
 install_useve() {
     set -e
@@ -32,6 +37,7 @@ test_encrypt() {
     @ qgpg --key key2.pub e datadir/folder1/1testfile datadir/1testfile.encrypted.gpg
     @ qgpg --key key2.pub -r e datadir
     @ qgpg --key key2.pub -r e datadir
+    @ qgpg --key key2.pub -r e $(pwd)/datadir/ datadir.encrypted/
     @ hash-update -t sha1 -f sha1sum.txt -r datadir
 }
 
@@ -47,7 +53,7 @@ test_decrypt() {
 
 install_without_tools() {
   python3 -m venv .local/share/qgpg
-  .local/share/qgpg/bin/pip install -U pip https://six9.net/py/qgpg/qgpg-1.0.tar.gz 
+  .local/share/qgpg/bin/pip install -U pip https://six9.net/py/qgpg/qgpg-1.0.tar.gz
   mkdir -p .local/bin
   ln -sfT ~/.local/share/qgpg/bin/qgpg .local/bin/qgpg
 
diff --git a/qgpg/__init__.py b/qgpg/__init__.py
index f9ec0b9..0f1df6f 100644
--- a/qgpg/__init__.py
+++ b/qgpg/__init__.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python3
 
-__version__ = "1.1"
+__version__ = "1.1.1"
 
 import argparse
 import os
@@ -260,7 +260,7 @@ class Processor:
         if self.opts.command == "decrypt":
             auto_path = in_file[: -len(self.suffix)]
         if self.opts.recursive and self.opts.out_path:
-            out_file = os.path.join(self.opts.out_path, os.sep.join(auto_path.split(os.sep)[1:]))
+            out_file = os.path.join(self.opts.out_path, strip_prefix(auto_path, self.opts.path))
             os.makedirs(os.path.dirname(out_file), exist_ok=True)
         else:
             out_file = self.opts.out_path if self.opts.out_path else auto_path
@@ -288,6 +288,12 @@ class Processor:
             sys.exit(1)
 
 
+def strip_prefix(s, prefix):
+    if s.startswith(prefix):
+        return s[len(prefix) :]
+    return s[:]
+
+
 def main():
     Processor()