11 Aug California Resident Manager Laws
New California Resident Manager Laws for 2015-16
Major changes are now on the books for California property owners and management companies. Amendments include a higher minimum wage, an increase in rents and adjustments to rent credits. The modifications to the California resident manager laws went into effect for the 2014 to 2015 year.
About the Changes
The higher minimum wage is for all California employees. In regards to the rent hike, property owners can now charge their resident managers more for an onsite unit. The new laws also increased the maximum amount that can be applied towards a property manager’s monthly salary. One law remained intact, and it is the one confirming that property owners and management companies employ resident managers. People who provide caretaking services are not independent contractors.
Potential Sanctions
Property owners who fail to pay resident managers a full minimum wage face back pay penalties. If a manager or property owner does not use the proper administrative agreement to offset wages for a unit, the state will not recognize the rent credit as a caretaker’s salary. This could result in the employer owing the manager twice the wages that the state considers unpaid. Other penalties may apply in cases involving unpaid wages.
Avoiding Risk
The California resident manager laws are extensive. Failure to act in accordance can result in tens of thousands of dollars paid to property managers for back pay along with severe civil penalties and possible criminal sanctions. To follow the law, your employees must sign a work agreement. In addition, assess the current employment agreements you have in place. Confirm that each one covers the wage and hour regulations passed for 2014 and 2015. Maintain thorough records regarding each property manager’s required workdays and hours. Also, ask your managers to do the same. Request a monthly copy of these records to ensure consistency. The names and addresses of your in charge managers must be posted on every building you own. To ensure complete law compliance, consider ordering an official copy of the minimum wage and work hour regulations. You can do this by calling the California Labor Commission.
Last Thoughts
The updated California resident manager laws apply to all property owners and management companies with resident managers or other people on staff who have caretaking responsibilities. To avoid financial risk, be sure to comply with the new mandates. See the recently published AOA Magazine article on new California resident manager laws for all the details and specifics regarding the recent changes.