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    Lily2012's Avatar
    Lily2012 Posts: 2, Reputation: 1
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    #1

    Oct 30, 2012, 01:00 PM
    Is it legal for an employer to pay overtime through its per diem account?
    I have search the net for an answer. I was only able to find articles explaining and defining per diem as an expense account used for travel expenses (which is my understanding of the term). I was NOT able to find one article related to per diem paying for overtime (non-travel) wages which lead me to question the legallity of it.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Oct 30, 2012, 04:31 PM
    You are wondering if it's legal to use a bank account dedicated to payment of per diem to also pay overtime? I really don't think that, legally, it makes any difference. The employer could pay overtime with cash kept in a drawer, legally. Now, from an accouting practices point if view that may be a different matter; you would have to ask an accountant about that.
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