salary vs per-diem rate of pay

Mary J

I have an employee whom is currently paid a per-diem rate of pay ( 11%more than her base) she is taking on a new job which falls under the exempt status and will be salary. She is asking for her per-diem rate of pay as her salary, I have searched through everything I have and connot find any ruling or law that indicates what is correct. According to our Benefits selection pkg. per-diem is no benefits, no sick, no vacation, my understanding of salary position is full benefit package, sick/vacation (medical/dental are offered but not required). I am in Washington State.

Brad Forrister

If I'm reading your question correctly, you're currently paying her an 11% premium on top of what would otherwise be her regular rate, and she's not getting any benefits. Now, she's taking on a new job that's salaried but at the same regular rate, so you're planning to drop the 11%. Sounds like a bargain for the employee to me. Benefits generally amount to an extra 30% or so. So she's getting a 30% benefit for 11%. Assuming you don't have a written contract or collective bargaining agreement that comes into play, I don't think there's anything limiting your discretion.

Brad Forrister
M. Lee Smith Publishers