Legal Question in Employment Law in California

I am a resident manager of a multi-family apartment building in California. In addition to an hourly wage, I am compensated with a partial rent credit of $600 per month (the market value of my apartment is $1800 and of this, I pay $1200). I just read that the maximum allowed credit is actually only $381. Is this correct?


Asked on 9/09/11, 12:10 pm

1 Answer from Attorneys

No, the rule is a little more complicated than that. The rule only applies to meeting the minimum wage requirement. It states that they cannot take a credit against their minimum wage obligation of more than 2/3 of the fair rental value, to a maximum amount of $451.89/month for a single manager, $668.46 if both members of a couple are employed in the management of the complex. So what they pay you in cash each month, if anything, plus $451.89, divided by the number of hours you work in a month, must add up to $8/hr or more. So what the limit really means is that if they are paying you in rent credit alone, they cannot work you more than 56.5 hours a month (assuming you do not work any overtime). If they pay you any cash, then that would be added. So, for example, if they give you a rent credit plus $200/month, then they could work you 81.5 hours a month (again assuming no overtime). Bottom line: it is not a limit on how much rent discount they can give you, it is a limit on how much of that discount can be applied to meeting the minimum wage law.

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Answered on 9/14/11, 12:33 pm


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