Legal Question in Employment Law in California

There is no wrong or right in having or not having a written employment agreement for apartment resident managers. It is, however, illegal to pay a manager in part or full with a rent credit without a written agreement. As for your compensation, it sounds like they are in serious violation of wage and hour laws as well. If $700/mo is the fair market value of the apartment, deducting $400/mo is legal. They can deduct $668.46 for two people, or 2/3 of the fair market value, whichever is less. However, if that is your only compensation, then you are being seriously underpaid under California wage and hour law. The rent credit can only be made against at least minimum wage. So they can only work you 50 hours per month for both of you combined for that $400 rent credit. Anything over that they must pay you at least $8/hr. Being "on call" as managers does not count as time worked, but time spent actually dealing with tenants or issues with the building does, whether it is during your regular 10-2 shift or any other time. The better your records of your time worked, the stronger your case will be, but it sounds like you are being very seriously underpaid no matter what. I handle cases throughout California, and have an association with an attorney in your area for cases in Fresno. If you would like further assistance with filing a claim for your unpaid wages, please let me know.