• Finley Employment Law

Resident Apartment Managers: Rent Credits



If you are a resident apartment manager in California, and your compensation consists of a combination of wages and lodging, below are some things that you should know about your rights under California law:

No. 1: You are entitled to receive the minimum wage for all hours worked. Effective January 1, 2018, the minimum wage for employers with 25 or fewer employees is $10.50 per hour; for employers with 26 or more employees, the minimum wage is $11 per hour.

No. 2: If your employer allows you to live in the apartment complex (that you manage) for “free,” your employer may use the “free” rent as a credit against the minimum wages that your employer owes you. However, your employer may not credit more than 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). Here are some examples of how rent credits work:

Example A – The ordinary rental value of your apartment unit is $1,500 and your employer has 25 or fewer employees. You work 100 hours per month – which means that your total monthly compensation is $1,100. Your employer may credit the amount of $593.05 against the $1,100 it owes you; thus, the balance due to you is $506.95.

Example B – The ordinary rental value of your apartment unit is $600 and your employer has 26 or more employees. You work 120 hours per month – which means that your total monthly compensation is $1,320. Your employer may credit the amount of $400 against the $1,320 it owes you; thus, the balance due to you is $920.

No. 3: If your employer is employing a couple (for instance, you and your spouse) as resident apartment managers, your employer may not credit more than 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) against the minimum wages that your employer owes you and your spouse.

No. 4: Before your employer may lawfully use any "free" rent as a credit against the minimum wages it owes you, you and your employer must enter into a written agreement, which states that you and your employer voluntarily agree to credit lodging against your wages.

If you have questions regarding anything discussed in this blog post, call ((916) 612-0326) or email (contact@finleyemplaw.com) 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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