At the Leichter Law Firm, APC, the Los Angeles employment law attorney Aryeh Leichter has represented resident managers throughout California for years, ensuring their rights are protected.
This is important because many apartment managers live on-site as part of their compensation. This arrangement can blur the lines between working hours and personal time, making explicit legal protections essential to ensure they are fairly compensated for all hours worked.
Understanding the overtime rules for residential apartment managers is crucial for employers and employees to ensure compliance with labor laws.
Here, we discuss an overview of eligibility and calculations for overtime.
California Apartment Managers and their Eligibility for Overtime
Certain employees are exempt from overtime pay requirements, typically those in executive, administrative, or professional roles, as defined by the Fair Labor Standards Act (FLSA).
Non-exempt employees are entitled to overtime pay for hours worked over 40 in a workweek.
Apartment managers may be classified as exempt or non-exempt based on their job duties, salary level, and whether they live on-site.
On-site apartment managers who are provided lodging as compensation may be subject to different rules. Still, if they do not meet the criteria for exemption, they must be paid overtime. Employers should carefully evaluate apartment managers’ job duties to determine whether they qualify for exempt status under the FLSA. This involves assessing their primary duties and level of responsibility.
California Apartment Managers and the Calculations for Overtime
Non-exempt employees are entitled to overtime pay at 1.5 times their regular pay rate for hours worked over 40 in a workweek.
Regular Rate of Pay: The regular pay rate includes the employee’s hourly wage and other compensation, which may include bonuses or commissions.
For on-site apartment managers, the value of lodging provided as part of their compensation should be included in the regular rate of pay calculation.
An example of this calculation would be:
Suppose an apartment manager earns $500 per week and is provided lodging valued at $200 per week.
- Total weekly compensation: $500 (wage) + $200 (lodging) = $700.
- Regular rate of pay: $700 / 40 hours = $17.50 per hour.
- Overtime rate: $17.50 x 1.5 = $26.25 per hour.
If the manager works 50 hours a week, the overtime pay for 10 hours would be 10 x $26.25 = $262.50. The total weekly income would be $700 (regular pay) + $262.50 (overtime) = $962.50.
Employers must keep accurate records of hours worked by non-exempt employees to ensure proper overtime calculation and compliance.
In addition to federal laws, employers must comply with state-specific labor laws, which may have different or additional requirements regarding overtime.
The provision of on-site lodging as part of compensation can complicate overtime calculations. Employers should ensure that the value of lodging is accurately accounted for in the regular pay rate. By understanding these eligibility criteria and calculations, residential apartment managers and their employers can ensure compliance with overtime rules, avoid potential legal issues, and provide fair compensation.
Contact the Leichter Law Firm, APC Apartment Manager Attorney in Los Angeles, California
Ensuring that apartment managers throughout California receive overtime pay and proper wages is crucial. Legal protections mandate fair compensation practices, helping to prevent wage theft and other unfair labor practices.
If you are an apartment manager in California and believe you are not receiving overtime pay as required, contact Aryeh Leichter, the Leichter Law Firm, APC founder, and employment law attorney in Los Angeles County, today to discuss the legal remedies available for your unique workplace circumstances.
Start with a free consultation by calling (818)-915-6624 or contacting the firm online.