per diem Q

[rgposner]

What is the name of your state (only U.S. law)? Ohio

I am working on a project for which my employer receives $145/day per diem per employee. The company only gives each employee $60/day. The company does provide an apartment that 2-3 employees share, that costs the company far less than $85/day/employee. In essence, the company is making money off of the employee's contract per diem. Is this legal/ethical?

 

[pattytx]

We don't know the contract arrangements between your company and the client. Having said that, as far as you the employee are concerned, however, per diem is not required by law at all.

If they are violating the terms of the contract, however, expect the client to find out eventually. If I were that client, and the terms of the contract called for dollar-for-dollar billing as regards Per Diem, I would want to see the Accounts Payable or Payroll records showing that the employee was actually paid what the company is billing for.

Honestly, though, unless you're responsible for contracts and contract adherence, you really don't have a dog in this hunt.

 

[rgposner]

Thanks for the info.