Legal Question in Employment Law in California
Required residency compensation
It is my understanding that when an employer requires that you reside at your workplace, ie: resident manager at a ministorage facility, the apartment/utilities cannot be considered as compensation in lieu of partial wages. We are a resident manager team making approx $7.75 an hour by being paid approx. $2075 monthly based on a 65 hour workweek. Our relief manager, whom we supervise, is paid $11.00 hourly. When required to work on our days off to cover for sickness of relief manager, etc., we are paid equal to 1 1/2 times our hourly rate or equal to relief manger's straight time pay, whichever is higher. The relief manager is our subordinate, supervised by us. When cost of living is adjusted, relief manager receives $0.50 hourly, as an example, we receive $50 monthly resulting in a $0.20 an hour increase. Is it legal for our wages to be lower based on receiving non-optional housing/utilies, and computing raises/overtime as above? If not, can they get around it by paying salary instead of hourly? I will look forward to any info you can provide me, as a basis to continue research, and consider other services which you provide. Thank you in advance.
2 Answers from Attorneys
Re: Required residency compensation
An employer may charge for the living space, but only if there is a written agreement specifying the amount of credit against wages AND only up to the amount authorized in the applicable wage order. In addition, you are entitled to pay for all hours over 8 in a day or 40 in a week at an overtime rate of one and one-half times your regular rate. We frequently find that many resident manager arrangements are not documented properly and often result in wages due to the employee. If you would like a review of your specific situation, feel free to contact me via email or phone.
Re: Required residency compensation
Where an employer supplies "room and/or board" as part of the job, these benefits have the value. In order to determine the value and how the benefits may interact with your wages, you should consult the Division of Labor Standards Enforcement web site. In particular, review the wage orders.
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