Can I Charge My RCFE Caregivers to Live in My Facility? How Much Can I Charge?
If your caregivers live at your Residential Care Facility for the Elderly (RCFE), you might wonder whether you can charge them for room and board. The answer is yes, but only within strict legal limits and with a written agreement that complies with California Wage Order 5.
Wage Order 5, which governs the residential care industry, allows employers to take a meals and lodging credit against wages, but only when the caregiver voluntarily agrees in writing. This means you can deduct part of the value of food and housing you provide, as long as the deduction is reasonable and the employee’s pay still meets or exceeds California’s minimum wage ($16.50/hour as of January 1, 2025).
How Much Can I Charge My RCFE Caregivers?
For 2025, the maximum amounts you can charge or deduct are clearly defined by law:
$77.58 per week for a private room
$64.04 per week for a shared room
$931.88 per month for an apartment
$1,378.49 per month if two employees live there as a couple
$5.96 for breakfast, $8.22 for lunch, and $11.01 for dinner
These rates usually increase each year as the state adjusts the minimum wage and cost-of-living benchmarks.
Important Rules to Remember
The caregiver must voluntarily sign an agreement listing the exact deduction amounts.
No deductions can be made for meals not provided or lodging not used.
If a caregiver must live in the facility as a condition of employment, you cannot charge more than the legal maximums.
Always keep copies of signed agreements in your payroll files for at least four years.
Providing on-site housing can be an excellent arrangement for staffing stability and overnight coverage, but only if you stay compliant. Following Wage Order 5 ensures your RCFE avoids labor disputes and protects both your business and your employees.
