Per Diem Employment Agreement Template for the United States

A Per Diem Employment Agreement is a specialized contract that establishes a daily-rate compensation structure between an employer and employee in the United States. This type of agreement differs from traditional salary or hourly employment by providing a fixed daily payment regardless of hours worked, making it ideal for temporary, project-based, or intermittent work arrangements. You'll need this document when engaging workers who provide services on an as-needed basis while ensuring compliance with federal employment laws.

When do you need this document?

You should use a Per Diem Employment Agreement when hiring consultants, temporary specialists, or seasonal workers who will be compensated on a daily basis. This arrangement is common in healthcare settings where per diem nurses fill staffing gaps, in construction for specialized tradespeople, and in consulting where experts are engaged for specific projects. The agreement is also valuable when you need flexible staffing for events, peak business periods, or to cover employee absences. Unlike independent contractor agreements, this document establishes an employer-employee relationship with all associated legal obligations and protections.

Key legal considerations

Your Per Diem Employment Agreement must clearly define the employment relationship to avoid misclassification issues that could result in penalties. The compensation structure should specify the daily rate, any additional allowances, and how partial days will be calculated. Include detailed job descriptions and performance expectations to establish the scope of work. Address overtime considerations carefully, as per diem employees may still be entitled to overtime pay under the Fair Labor Standards Act if they work more than 40 hours per week. The agreement should also cover confidentiality requirements, intellectual property ownership, and termination procedures. Be sure to include provisions for expense reimbursement and clarify whether benefits are provided to avoid future disputes.

Legal requirements in United States

Under federal law, your Per Diem Employment Agreement must comply with the Fair Labor Standards Act, which governs minimum wage and overtime requirements even for daily-rate employees. You must maintain accurate records of hours worked and ensure that the daily rate meets or exceeds minimum wage requirements when calculated on an hourly basis. The Internal Revenue Code requires proper tax withholding and reporting for per diem employees, distinguishing them from independent contractors. If your company has 50 or more employees, per diem workers may be eligible for Family and Medical Leave Act protections depending on their work history. The Americans with Disabilities Act applies to per diem employees, requiring reasonable accommodations when necessary. Additionally, you must complete Form I-9 verification under the Immigration Reform and Control Act, even for temporary per diem workers.