The Apprentice's Guide to Per Diem: What to Ask Before You Accept

The first time you get dispatched to a job that requires travel, somebody is going to tell you the per diem rate and you are going to say okay and that will be the end of the conversation. Do not let that be the end of the conversation. There are four questions you need answered before you pack your truck, and most apprentices do not know to ask any of them. First: what is the daily rate and is it a flat daily rate or a reimbursement system? A flat rate means you get $185/day regardless of what you actually spend. A reimbursement system means you need receipts and you get paid back for documented expenses up to the cap. These are very different situations in practice. If it is a reimbursement system, find out what categories of expenses are covered and what documentation is required before you spend anything. Second: what is the payment schedule? Is it included in your weekly paycheck or does it come separately? When does it start — the day you arrive, the day you start working, or after a waiting period? I have seen members show up on a Monday, start work on Tuesday, and find out the per diem clock started on Wednesday because of how the contractor calculated the first-week cutoff. Know this before you are paying for three days of hotel out of pocket. Third: what happens to per diem on days you do not work — rain days, holidays, equipment downtime? Some agreements cover per diem on lost-time days. Some do not. If you are in a situation where the weather could shut the job down for multiple days, knowing whether your per diem continues matters to your financial planning. Fourth: is there a housing option provided by the contractor and if so what are the terms? Some large projects have company housing or negotiated hotel rates. These can be better or worse than going independently depending on location and quality. Know what is available before you commit to a hotel arrangement on your own. Ask all four questions. Write down the answers. Keep the documentation. The members who get paid correctly are the ones who knew exactly what to expect from day one.