Legal Question in Tax Law in Tennessee

Per Diem Law

I have seen the contracts my company writes up and they bill our clients for double the per diem that they pay us. Given that this is tax free money, is this legal? Are we entitled to the full amount? Is our company scamming us?


Asked on 4/30/07, 4:20 pm

1 Answer from Attorneys

Regina Mullen Legal Data Services, PLC

Re: Per Diem Law

The company is entitled to make a profit, and they are entitled to charge clients independent of what they pay employees,--unless agreed in writing otherwise.

If the salary for which you agreed to work is now intolerable to you, either negotiate a pay raise or find another job.

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Answered on 5/01/07, 9:36 pm


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