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Overtime/Per Diem
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Overtime/Per Diem
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Spent hours trying to find the definitive rule on including per diem when figuring overtime for non-exempt employee. Can anyone steer me in the right direction? Thanks!
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Overtime/Per Diem

posted at 5/14/2010 7:46 AM EDT
Posts: 3
First: 5/14/2010
Last: 5/14/2010
Spent hours trying to find the definitive rule on including per diem when figuring overtime for non-exempt employee. Can anyone steer me in the right direction? Thanks!
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Overtime/Per Diem

posted at 5/14/2010 8:31 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
I don't understand the connection between the two - they're totally different issues. Can you elaborate on what you're trying to do here?
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Overtime/Per Diem

posted at 5/14/2010 8:35 AM EDT
Posts: 3
First: 5/14/2010
Last: 5/14/2010
Was told that if a non-exempt hourly employee received per diem and worked more than 40 hours per week, the per diem would have to be included in calculating the overtime rate. If that is not correct, that's probably why I can't find the rule.
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Overtime/Per Diem

posted at 5/14/2010 8:49 AM EDT
Posts: 562
First: 11/12/2009
Last: 9/14/2011
"Per diem" usually means money provided to cover expenses, generally when working at a remote site. If an employee is sent to Kansas from Utah to work temporarily, the employer may give the employee a reasonable per diem to cover daily living expenses in lieu of actual expense reimbursement.

Where a court might conclude that a per deim be included with wages for OT purposes is if the definition of per diem is so loosely applied as to be considered in the same category as bonus pay if given to a non-exempt employee. For example a business owner is trying to recruit a technician and decides to give the tech $50 per day as a "per diem" above and beyond the tech's wages with no requirement that it be used for business related expenses. That would probably be construed as wages subject to inclusion in calculation of wages for overtime pay.
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Overtime/Per Diem

posted at 5/14/2010 9:40 AM EDT
Posts: 3
First: 5/14/2010
Last: 5/14/2010
Thank you. The example you gave of working remotely is exactly our situation. It's to help with expenses and no receipts have to be turned in. They are paid a flat rate per week.
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