Per diem

By per diem, I assume you mean a stipend for expenses while on the road. The rule is that money for meals, lodging, fuel, toll fees, and etc. are benefits given by the business at its own discretion. In other words, as long as minimum wage and overtime laws are not being violated, it is a matter set by the terms of the contract between employee and employer. Absent a labor union, the employer can unilaterally set the terms of prospective employment, and the employee can accept those terms (e.g., the new per diem rate) or reject them and go elsewhere to contract for their labor. The more pertinent question is whether the employer is not paying overtime, i.e., counting as hours worked, all the time these employees spend away from the office. That is something that will require a review of their duties and how they are paid to see whether they are exempt. There is an upswing in overtime cases right now involving situations like this, in light of some recent cases concerning what should be considered work time for nonexempt employees who work away from their employer’s workplace. As far as having no employee handbook, written policies, evaluations, bonus criteria, or job posting and promotion policies, none of those are legally required. It may not be a wise choice for running a business but not illegal. Hope that helps. -Don