Apartment House Owner Entitled To Credit For Free Rent Given To Resident Manager As Against Manager’s Claim For Minimum Wage.

Plaintiff and defendant entered into a written agreement whereby plaintiff would work as a resident manager of an apartment complex and receive free rent, $100 per month toward utilities, one telephone line and an internet high speed connection. Plaintiff thereafter brought a claim before the Labor Commissioner against defendant for not paying her a minimum wage. Defendant was ordered to pay her a minimum wage, but was entitled to a credit for the free rent plaintiff received. In analyzing the situation, the appellate court stated: “The resolution of this issue turns on the interpretation of Industrial Welfare Commission (IWC) wage order No. 5-2001 (Cal. Code Regs., tit. 8, § 11050), commonly known as Wage Order 5.” The court concluded the parties entered into a written agreement which entitled defendant to take a rental credit against plaintiff’s right to receive minimum wage. (Von Nothdurft v. Steck  (Cal. App. Fifth Dist.; June 26, 2014) 227 Cal.App.4th 524, [173 Cal.Rptr.3d 827].)