Understanding California per diem laws 2025 is crucial for employees and employers alike. Whether you’re a full-time worker transitioning into per diem employment or a business owner managing per diem California workers, knowing the intricacies of per diem employee rights in California can help navigate the complexities of compensation, benefits, and legal compliance.
What Is Per Diem Employment?
Definition of Per Diem Employee A per diem employee is someone hired on an as-needed basis without the fixed hours associated with full-time or part-time work. These positions often offer flexibility and are common in industries like healthcare, education, and construction
How Does Per Diem Work in California?
Per Diem work allows individuals to accept or decline shifts based on availability. Employers are not obligated to provide consistent work schedules, and employees enjoy the liberty to manage their time.
Per Diem vs Full-Time Pay
Per Diem, workers are usually paid a higher hourly rate compared to full-time employees. However, this higher pay compensates for the lack of benefits such as health insurance, paid time off, or retirement contributions.
Key California per Diem Laws
Is Per Diem Required by Law in California? No, per Diem pay is not mandated by California law. However, if an employer offers per diem compensation, it must comply with the state’s Labor lawyers Los Angeles laws, including minimum wage, overtime pay, and meal and rest break requirements.
California per Diem Rates 2024
The per diem rates in California for 2024 vary by city and are often dictated by federal General Services Administration (GSA) guidelines. For example, Los Angeles’s per diem rates are higher due to the city’s cost of living.
Travel Time Pay and Mileage Reimbursement in Californi
Under California travel reimbursement laws, employers must compensate workers for reasonable travel expenses, including mileage, lodging, and meals, when traveling for work.
Does Per Diem Get Paid More? In many cases, per diem employees earn higher wages to compensate for the absence of benefits. However, their income may fluctuate based on the number of shifts worked.
Per Diem Employee Rights in California
- Benefits for Per Diem Workers While per diem employees generally do not receive traditional benefits like health insurance or paid leave, they may be eligible for some perks under certain conditions.
- Health Insurance for Per Diem Employees: Employers with 50 or more full-time equivalent employees are required under the Affordable Care Act (ACA) to offer health insurance to those averaging 30 hours per week.
- Sick Leave: Under California’s Paid Sick Leave (PSL) law, per diem employees who work at least 30 days within a year are entitled to accrue sick leave.
- Overtime and Holiday Pay Do per diem employees get time and a half for holidays? Yes, if a per diem worker qualifies as non-exempt under California labor laws, they are entitled to overtime pay for hours worked beyond 8 in a day or 40 in a week, regardless of their employment status.
- Workers’ Compensation Is per diem included in workers’ comp? Yes, all employees in California, including per diem workers, are entitled to workers’ compensation benefits in case of a work-related injury or illness.
- Employer Responsibilities & Per Diem Employee Policy Employers must clearly outline their per diem employee policies, covering compensation, schedules, and benefits. These policies should comply with California labor laws and avoid misclassifying employees as independent contractors.
When Is Per Diem Required to Be Paid in California?
- Employers must pay per diem compensation promptly as per the agreed schedule. Additionally, reimbursements for travel or other work-related expenses must be processed in accordance with california part time labor laws codes.
- Per Diem Payroll Compliance Employers must ensure accurate record-keeping and timely payroll processing for all per diem employees. This includes withholding applicable taxes and adhering to minimum wage laws.
You can also read: Differences Between Part-Time vs. Full-Time Hours in California
California-Specific Considerations
- California Labour Code Section 213 Under California Labour Code Section 213, employers must pay wages through authorized methods, ensuring per diem workers receive prompt and accurate payments.
- Reimbursement for Work-Related Expenses California law mandates reimbursement for reasonable business expenses incurred by employees, including travel, meals, and mileage, ensuring per diem workers are not financially burdened.
- Flexible Work Policies California promotes flexible work arrangements, making per diem positions attractive for workers balancing multiple jobs or personal commitments.
- Per Diem in Healthcare Per Diem Employees in Healthcare The healthcare sector heavily relies on per diem staff to address fluctuating patient needs. These roles provide flexibility for nurses, therapists, and other medical professionals.
- Does a Per Diem Job Mean Fewer Benefits? Healthcare employers often offer limited benefits to per diem workers, but the higher hourly rate often compensates for the absence of full-time perks.
FAQs
A per diem job refers to a position where an employee works on a flexible, on-call basis. These roles often appeal to individuals seeking freedom from rigid schedules.
While there is no cap on hours for per diem workers, consistent full-time hours may trigger reclassification and eligibility for benefits like health insurance.
Yes, per diem pay is taxable unless it is a reimbursement for travel expenses documented with receipts. Misclassification of taxable income can lead to penalties for both employers and employees.
Conclusion
Per Diem, employment in California offers flexibility for workers and adaptability for employers. While per diem employees enjoy higher hourly rates and work schedule freedom, they often forgo traditional benefits. Employers must comply with per diem laws in California to ensure fair treatment, proper compensation, and adherence to labor regulations. Whether you’re an employee wondering, “What does per diem work mean?” or an employer asking, “Is per diem required by law in California?” understanding these rules is vital for a harmonious and compliant workplace. California per diem employment continues to be an integral part of the workforce, bridging gaps in industries that require flexibility and specialized expertise.
ICONIER Digital Agency