California Employers Cannot Offset Rent for Wages Without A Voluntary Written Agreement
My Orange County Employment Law Firm has recently handled two rental offset cases, one in Orange County and one in Los Angeles County. Generally, rent may not be credited against minimum wage without a voluntary written agreement between the employee and the employer. Both clients were property managers, one at a Hotel and the other at a large apartment complex. They earned low hourly wages, and had their rent offset from their wages. This is legal, however, there are strict guidelines as to what the employer can deduct as a rental credit.
Regardless if there is a written agreement or not, the amount of the rental credit must not be more than the following: (1) $37.63 per week for rooms occupied alone; (2) $31.06 per week for shared rooms; (3) Two-thirds of the ordinary rental value but never more than $451.89 per month for apartments; (4) Where a couple are both employed by the employer, two-thirds of the ordinary value but never more than $668.46 per month. (All listed amounts effective as of January 1, 2008.)
Any employer who has failed to abide by these limitations or who has otherwise failed to implement a voluntary written agreement as required, may be liable to the affected employee for not only the amount of wages unpaid as a result of the unlawful offset, but also for penalties, interest, and reimbursement of reasonable attorney fees and costs.
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