Q: What are the rules around in-kind payment in California -- Los Angeles, specifically?

A: California law requires that non-exempt employees be paid at least the minimum wage in money for every hour that they work. However, the employer is allowed to offset its minimum wage obligation by defined amounts set forth in the Wage Orders for lodging and meals provided by the employer. However, paying the employee in lodging credits only is against the law.

It would be prudent for you to locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options. I would suggest you look either on this site, or go to www.cela.org, the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers.

Most employment attorneys who practice this area of law offer a free or low-charge consultation and then if the matter has merit and sufficient value, they work on a contingency basis, meaning you can hire an attorney without paying any money until the matter results in a positive outcome for you. Many advance all the costs of the litigation as well. Do not let fear of fees and costs keep you from finding a good attorney.

Good luck to you.

A: Read section 10 of the appropriate wage order. Order No. 5-2001 covers public house keeping -

10. Meals and Lodging

(A)"Meal" means an adequate, well-balanced serving of a variety of wholesome, nutritious foods.

(B)"Lodging" means living accommodations available to the employee for full-time occupancy which are adequate, decent, and sanitary according to usual and customary standards. Employees shall not be required to share a bed.

(C) Meals or lodging may not be credited against the minimum wage without a voluntary written agreement between the employer and the employee. When credit for meals or lodging is used to meet part of the employer's minimum wage obligation, the amounts so credited may not be more than the following:

Effective Dates:

January 1, 2001 January 1, 2002

Lodging:

Rooms occupied alone $29.40 per week $31.75 per week

Room shared $24.25 per week $26.20 per week

Apartment-two-thirds (2/3) of the ordinary rental value, and in no event more than $352.95 per month $381.20 per month

Where a couple are both employed by the employer, two-thirds (2/3) of the ordinary rental value, and in no event more than $522.10 per month $563.90 per month

Meals:

Breakfast

$2.25 $2.45

Lunch $3.10 $3.35

Dinner $4.15 $4.50

(D) Meals evaluated, as part of the minimum wage, must be bona fide meals consistent with the employee's work shift. Deductions shall not be made for meals not received nor lodging not used.

(E) If, as a condition of employment, the employee must live at the place of employment or occupy quarters owned or under the control of the employer, then the employer may not charge rent in excess of the values listed herein.

https://www.dir.ca.gov/iwc/wageorder5_010102.html

A: In California, including Los Angeles, employers are generally required to pay employees at least the minimum wage in monetary form. In-kind payment should be valued at or above the minimum wage. It is important to report and withhold taxes on the fair market value of in-kind payments. Specific industries or occupations may have additional regulations. Consulting with an employment attorney or the California Division of Labor Standards Enforcement (DLSE) can provide more detailed information based on your circumstances.