I am working on a job where I receive a per diem allowance to cover my expenses. I am "officially" on a 4x10 work schedule, but I have been working 5x8s. Recently, I requested two days of personal time off (Thursday and Friday). The time off was approved and I did not work those two days. My company witheld and did not pay me per diem for Thursday, Friday and Saturday. Is this legal? Are there any California laws regarding per diem I can look at?

Why would you expect payment for business expenses on days that you did not work?

Why would you expect payment for business expenses on days that you did not work?


That was my first thought. :rolleyes: :eek:

Why would you expect payment for business expenses on days that you did not work?

More importantly, if you did receive such a payment it would fail the IRS "accountable plan" tests and be a taxable wage payment. "Per Diem" is only non-taxable to the extent that it passes the accountable plan tests.

IRS pubs 463 and 1542 discuss this in detail.

This is a long-term job assignment and we are paid a per diem allowance even on our days off.

What is the per diem intended to cover? Did you actually incur any business expenses on your nonwork days?