RESIDENT MANAGER COMPENSATION LAWS IN CALIFORNIA

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Compensation of all resident managers in California is subject to the Industrial Welfare Commission’s order 11050, Order Regulating Wages, Hours, and Working Conditions in the Public Housekeeping Industry.

A full reading of the order itself, which can be reached through the foregoing link, is recommended.

The order makes the resident manager subject to the same minimum wage and overtime rules as all other non-exempt employees in the State.  In addition, and most importantly, it limits the amount of compensation which can be offset by the occupancy of the managers rental unit, and the total amount of rent which can be charged for the unit, as, for example, in the case of a part time assistant manager.  As of March, 1998, the total of such offset is as follows:

1.  Room occupied alone $27.05 per week

2. Room shared with another employee $22.30 per week

3. Apartment occupied by one employee with or without co-occupants not employed by landlord:  2/3 of the ordinary rental value not to exceed $324.70 per month.

4. Apartment occupied by couple, both employed by landlord, 2/3 of ordinary rental value, not to exceed $430.20 per month.

If the employee must reside on the premises as a condition of employment (as a resident manager must) the landlord may not charge rent aggregating more than the amounts stated above.

The charges against compensation listed above can only be taken if there is an agreement in writing to that effect between the employer and employee.  In other words, no charge may be made against the wages of the resident manager if he is employed on an informal, oral contract, or if his written contract does not provide for a portion of his compensation to be in the form of the rental unit.  

Should the landlord fail to comply, an aggrieved former or present resident manager could sue for all unpaid wages, including overtime and credit taken for rental value of the managers unit, a one month “waiting time” penalty, interest, court costs and attorney fees.  Considering that the cost, if a disgruntled employee sues, could amount to the tens of thousands of dollars, compliance is a must.

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