What is the name of your state (only U.S. law) Illinois
I am an Engineer. I have a home in Illinois but frequently do contract work all over the country. I have recently been offered a job in California that is expected to be a temporary 9 to 12 month project. I told the contract agency that I must have a per diem, which I am entitled. The contract agency agreed to provide a split per diem which is pretty standard in my line of work.
The pay rate is $50 an hour, the per diem is $160 a day x 5 days a week. So the split would be this; $160 x 5 = $800/40 = $20 hourly per diem and $30 hourly rate.
Now the agency is arguing that all overtime pay will be calculated using $30 an hour as my base rate NOT at $50. My argument is that they cannot deduct the per diem when they calculate the overtime. I have been on a per diem many times and have never heard of this "tactic", in fact I find it ridiculous as it would completely negate the benefit of the per diem.
My question is are they correct or not? It seems like a scam to me.What is the name of your state (only U.S. law)?