Per Diem

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Per Diem

If a company collects per diem from a customer for work company employees are performing for the customer, can the company keep a portion of the per diem rcvd from the customer?

Asked on June 9, 2018 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, it can, unless the employees have written employment contracts guarantying them the full per diem. Otherwise, the company decides what it pays its employees, including any per diems (e.g. whether they get one and how much), and the payment the company receives from the customer(s) has *nothing* to do with how much or what the company pays its workers. The customer cannot control what or how much a company pays its employees.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, it can, unless the employees have written employment contracts guarantying them the full per diem. Otherwise, the company decides what it pays its employees, including any per diems (e.g. whether they get one and how much), and the payment the company receives from the customer(s) has *nothing* to do with how much or what the company pays its workers. The customer cannot control what or how much a company pays its employees.


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