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9th Circuit Per Diem Case

by Jennifer Shaw | | February 19, 2021

If you pay employees a “flat” or automatic amount for reimbursement of their expenses, such as cell phone and internet charges, this new 9th Circuit case is important:  https://cdn.ca9.uscourts.gov/datastore/opinions/2021/02/08/19-55784.pdf.  The Court ruled that an employer’s per diem expense reimbursement payments constituted compensation for work rather than business expense reimbursements. As a result, the employer should have included the per diem payments in the calculation of the employees’ “regular rate of pay” for overtime and other purposes, including mandated sick leave and reporting time pay.  Stay tuned!   Watch Jennifer discuss this development here.

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Jennifer Shaw Founder
Jennifer Shaw is the founder of Shaw Law Group, and a 2019 recipient of the Sacramento Business Journal’s “Women Who Mean Business” award. A well-respected expert in employment law for more than 25 years, employers regularly rely on Jennifer to counsel them on a broad range of employment law issues. Jennifer’s practical advice covers subjects such as wage-hour compliance, anti-discrimination and harassment policies and procedures, reasonable accommodation/leave of absence issues, and hiring/separation processes. She is a trusted advisor to in-house counsel, HR professionals, and leadership across a broad spectrum of public sector and private sector employers.
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