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Per Diem Employee
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Per Diem Employee
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
We have a need for 3-5 employees to travel for auctions/close outs. However, this need only comes up maybe once a month. We are currently using staff to do this but when they leave the work they do b
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Per Diem Employee

posted at 5/2/2013 3:34 PM EDT on Workforce Management
MV
Posts: 11
First: 5/24/2012
Last: 5/2/2013

We have a need for 3-5 employees to travel for auctions/close outs. However, this need only comes up maybe once a month. We are currently using staff to do this but when they leave the work they do builds up.
I am looking for options. 1). would be to use staffing agency but labor is questionable, 2) would be Per Diem but I would probably have to hire twice the number due to availability. Because they are an employee, I would still need to pay for unemployment and workers comp. They would only work mayve 3-4 days a month. Could they still collect unemployment? Is this the best option? What are the legal pit falls?

Re: Per Diem Employee

posted at 5/3/2013 8:37 AM EDT on Workforce Management
Posts: 44
First: 11/7/2011
Last: 5/6/2013
In Response to Per Diem Employee:
I think the more accurate label you're looking for is "casual employee" or "part time employee" - many employers have these in their payroll lists, to be called in occasionally whenever there is work for them.

If your "per diem" employees are doing exempt work, then it's legally OK to pay them on a per diem basis.  If the work they're doing is non-exempt, then you must pay them on an hourly basis, for every hour they work.

I'm not sure I understand what you mean by whether or not they'd be eligible for unemployment benefits.  If you mean after they're let go from your company, then yes, they would be eligible for benefits just like every other employee who is let go.  Please note though that their benefit rates would be based on the number of hours they worked for you, and if they only worked three or four days per month, their benefit rates will be correspondingly low.

If you mean will they be entitled to UI benefits while they're working for you because you're not giving them full time hours then no, they won't be entitled to UI benefits in this situation.  This would only happen if you took one of your full timers and reduced his/her hours drastically.

Re: Per Diem Employee

posted at 5/4/2013 9:36 AM EDT on Workforce Management
Posts: 216
First: 9/20/2011
Last: 5/15/2013
In Response to Re: Per Diem Employee:
In Response to Per Diem Employee : I think the more accurate label you're looking for is "casual employee" or "part time employee" - many employers have these in their payroll lists, to be called in occasionally whenever there is work for them. If your "per diem" employees are doing exempt work, then it's legally OK to pay them on a per diem basis.  If the work they're doing is non-exempt, then you must pay them on an hourly basis, for every hour they work. I'm not sure I understand what you mean by whether or not they'd be eligible for unemployment benefits.  If you mean after they're let go from your company, then yes, they would be eligible for benefits just like every other employee who is let go.  Please note though that their benefit rates would be based on the number of hours they worked for you, and if they only worked three or four days per month, their benefit rates will be correspondingly low. If you mean will they be entitled to UI benefits while they're working for you because you're not giving them full time hours then no, they won't be entitled to UI benefits in this situation.  This would only happen if you took one of your full timers and reduced his/her hours drastically.
Posted by hrbth

hrbth- Not sure this is entirely accurate. Employees are entitled to UI benefits based on their entire work history not based on their last employer. So if these folks are receiving UI they will continue to receive it with an offset for this part time work.

Re: Per Diem Employee

posted at 5/6/2013 8:38 AM EDT on Workforce Management
Posts: 44
First: 11/7/2011
Last: 5/6/2013

I was unclear.  I meant that if he hires a casual employee to work three/four days per month and that employee is not receiving UI benefits at the time of hire, he/she won't become entitled to UI benefits just because he only works three/four days per month and not full time.

I think OP was probably really wondering whether the casual employee would be entitled to UI benefits if OP let him/her go.  And while the ex-casual employee may receive benefits based on histories with employers other than the OP, I believe only a small portion (based on working three/four days per month) of those benefits would be applied to OP's UI account.

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