They don't do it as a FAVOR to their drivers. If the driver pay is ,say, .26 then .12 goes to per diem. so company only has to match .14 for your social security. If you choose not to have per diem you can still claim food allowance, etc. at the end of year. The difference is you don't pay that "PRIVILEGE" fee to the company,and have more money contributed to your social security.
Anyway my argument was not wether per diem is a good or bad thing, but questioning the legality of telling the drivers that company won't receive any financial gain from it to make drivers sign up, and when they find out they're being charged for it, they're not allowed to opt out.
Werner Per Diem fraud
Discussion in 'Report A BAD Trucking Company Here' started by LetsChangeThis, Nov 12, 2009.
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They wouldn't even necessarily need a "lawyer". Many states offer WAGE and HOUR enforcement for free.
If their "Company Policy" says they don't charge for it, when in fact THEY DO, that by any definition is DECEPTION and/or FRAUD. -
Yes I know, they blow-smoke up the drivers skirt that it will "lower your taxes" and give you $20 to $40 more dollars in your paycheck each week, but realistically, it only benefits THEM, because they PAY LESS in Payroll taxes, PAY LESS for Workers Comp to the state, they PAY LESS for your unemployment, and would have to pay the driver's family LESS as well if he were KOJ. -
The opt in or out date, or termination.
DECEPTION has nothing to do with it. -
Ok so help me understand this a bit better.
Per diem is what $59 per day. That's what the gov allows for each day on the road, right?
Werner pays $X per day to the driver for Per diem, and in return they reduce the drivers mileage by .01 per mile, correct?
So .01 per mile for say a week of 2500 miles is $25...how much is the Per diem that Werner pays out? -
Ill take my 59$ a day write off and huge refund check, heck, and thats living in Cali.
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My $.02 ?
If anything is in WRITING and you SIGNED it as stated - they are not deceptive.
What your TOLD verbally and what is in WRITING can and usually are different...so if it's in writing about this 'privilege' fee - it's legal.
If it's not part of the original agreement that you SIGNED -or- if they change it down the road and do not notify you and request your SIGNED signature accepting the new terms - then again, thats not legal.
A contract cannot be typically changed by either party w/o the other side reviewing and signing off on it.
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The 1-cpm they're charging you for the privelege of having per diem is to cover their costs... even though your gross is decreased (giving them an edge on social, workmans' comp, etc.) that doesn't make up for the increase in corporate taxes they pay due to the decrease in income paid to you. So shlock companies charge YOU for their costs. -
OK so let me see if I have this straight. Lets use an example of 2500 miles per week at a wage of .25 per mile
Your weekly gross is $625
If they comp you for Per diem at .04 per mile then you have $100
So your check would reflect $725, right?
If this is the case then they are not being deceptive. Per diem is not income...it is a figure that the gov says you can use for expenses. You're still making $625...and at the end of the year you can calculate the difference between the Per diem paid out and the $59 per day allowed.
Is this correct?
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