EmploymentQuestion 565 of 1632
Under Wage Order 16, may a construction contractor take a credit against the minimum wage for lodging it provides to a remote-site employee?
a.Yes, the full market rental value of the unit may be credited
b.Only up to the Wage Order maximums, with written consent
c.No, lodging credits are prohibited entirely in California
d.Yes, but only where the lodging sits on the actual jobsite
Explanation
Wage Order 16 §10 allows lodging to count toward the minimum wage only up to the maximum amounts the IWC fixes, and only under a voluntary written agreement signed by the employee. Full market rent cannot be charged against wages. Lodging credits are not banned outright in California. And nothing in the order limits the credit to lodging that happens to sit on the jobsite.
Law Reference: IWC Wage Order 16 §10 (meals and lodging)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)