EmploymentQuestion 565 of 690

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 may be credited
b.Only up to specific maximum amounts set in the Wage Order, and only with the employee's voluntary written agreement
c.No, lodging credits are prohibited entirely in California
d.Yes, but only if the lodging is on the actual jobsite

Explanation

Wage Order 16 §10 permits a meal-and-lodging credit against the minimum wage only up to the specific maximums fixed by the IWC, and only with a voluntary written agreement signed by the employee. The credit is capped — full market value cannot be charged.

Law Reference: IWC Wage Order 16 §10

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