Per diem employees offer employers flexibility and cost savings by having fewer employees on hand with access to workers on an as-needed basis. As a result, an employer can ebb and flow their workforce based on their need. Unlike contractors, per diem workers are employees for the company they work for. The relationship between employers and per diem employees is unique and one that comes with several benefits for both parties.
In some cases, but not all, per diem employees may not receive certain benefits regular full-time employees have. Some of these benefits include retirement, paid time off, or health insurance coverage. When a per diem employee is brought on board, they must be given clear and understandable information regarding what benefits they are entitled to and which they will not receive. Insufficient communications to a per diem employee about their rights or failing to provide them with the benefits they are entitled to can lead to a legal dispute.
Employee lawsuits can be costly and time-consuming. They can take a business owner’s attention and efforts away from the critical job of running their company. It is best to avoid employee disputes and lawsuits when possible. Having a well-written employee handbook is one way to make sure that employees have accessible and easy-to-understand information about company policies and their rights. However, if a dispute does arise, also being connected with experienced legal counsel is key.
In California, if you need help with employee handbooks or other employee-related actions, you are welcome to call the Los Angeles business attorney at the Leiva Law Firm. Likewise, if you have to defend yourself against a lawsuit, the trusted and skilled legal team at the Leiva Law firm can assist you here, too.
How Are California Per Diem Employees Handeled?
The first thing that an employer should do when using a per diem employee is to be sure to communicate what the work relationship will be including the benefits that may or may not be available.
Next, it is up to the employer to accurately track how many hours a per diem employee works. If a per diem employee works over 30 hours in a week then, the Affordable Care Act says that they should be given healthcare insurance.
Additionally, per diem employees that work over 1250 hours within a 12-month period, will then be eligible for paid time off benefits. This is due to provisions under the Family and Medical Leave Act.
California businesses must reimburse per diem employees for a specific amount of per diem expenses and reasonable expenses. When travel expenses are related to one’s job an employer must pay per diem.
Speak to an Attorney at the Leiva Law
If you are a business owner, per diem employees can be a benefit to your operations. But, it is worth understanding how to manage and fairly pay per diem employees to avoid legal complications of such a relationship.
For assistance with an employee lawsuit or for startups needing guidance on employee handbooks and employment law, please call the Leiva Law Firm today to schedule a free consultation at (818) 519-4465.
