If you are a resident apartment manager in California, you may already know that California has detailed, and sometimes complex, laws concerning compensation for resident apartment managers. In a previous blog post (click here), we discussed some of the applicable laws when your compensation consists of a combination of wages and lodging.
What are the applicable California laws for resident apartment managers when your employer (a) requires you to live in the apartment complex that you manage and (b) charges you for rent? Below are some things that you should know about your rights under California law:
No. 1: California law limits the amount that your employer may charge you for rent. Specifically, the maximum amount that you may be charged for rent is the lesser of: (a) two-thirds of the ordinary rental value of your apartment unit or (b) $593.05 per month (for an employer with 25 or fewer employees) and $621.29 per month (for an employer with 26 or more employees).
Example A – The ordinary rental value of your apartment unit is $600 and your employer has 25 or fewer employees. Your employer may not charge you more than $400 per month for rent. (Two-thirds of $600 is $400, and $400 is less than $593.05.)
Example B – The ordinary rental value of your apartment unit is $900 and your employer has 25 or fewer employees. Your employer may not charge you more than $593.05 per month for rent. (Two-thirds of $900 is $600, and $593.05 is less than $600.)
No. 2: If your employer is employing a couple (for instance, you and your spouse) as resident apartment managers, the maximum amount that you and your spouse may be charged for rent is the lesser of: (a) two-thirds of the ordinary rental value of your apartment unit or (b) $877.26 per month (for an employer with 25 or fewer employees) and $919.04 per month (for an employer with 26 or more employees).
Example A – The ordinary rental value of your apartment unit is $1,200 and your employer has 26 or more employees. Your employer may not charge you and your spouse more than $800 per month for rent. (Two-thirds of $1,200 is $800, and $800 is less than $919.04.)
No. 3: You and your employer must enter into a voluntary written agreement that sets forth the rental terms.
No. 4: Your employer may not credit any part of the apartment unit’s value as a credit against the minimum wages that your employer owes you.
If you have questions regarding anything discussed in this blog post, call ((916) 612-0326) or email ([email protected]) Finley Employment Law today. We serve clients throughout California, including Sacramento, Folsom, Roseville, Granite Bay, and Elk Grove.
The information in this blog post is for general informational and advertising purposes only and is not, nor is it intended to be, legal advice. Instead, you should speak with a California employment attorney for advice regarding your individual situation.
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