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Multi-Unit Dwellings
Oregon law provides an exemption from the payment of minimum wage and overtime for managers, assistant managers, and maintenance employees employed at multi-unit accommodations that provide temporary or permanent lodging. The employee must live on the premises of the complex where employed in order for the exemption to apply. ORS 653.020(9) Federal law does not provide the same exemption. If a business is subject to federal regulation, employees must be paid the federal minimum wage and appropriate overtime. In general, there is federal enterprise coverage of a business when the employer generates a gross annual volume of $500,000 or more. Individual coverage under federal law applies to any employees engaged in interstate commerce. For more information about federal coverage, call the U.S. Department of Labor Wage and Hour Division at 503-326-3057.
 
Q. Is it necessary to pay minimum wage and overtime to apartment managers who live on the premises of a small apartment complex which grosses less than $500,000 per year?
A. No. As long as the manager lives on the premises for the purposes identified in the statute, the exemption applies. In addition, individuals hired to assist the manager and maintenance employees who also live on the premises are exempt as long as there is no federal coverage.
 
Q. If an owner has three complexes which gross $180,000, $175,000, and $150,000 respectively, does the exemption apply for each?
A. Under Oregon law the exemption from minimum wage and overtime under ORS 653.020(9) would still apply. However, because the employer grosses more than $500,000 per year, federal law also applies. Because federal law does not grant the same exemption, the employees in these positions would need to be paid no less than federal minimum wage and overtime.
 
Q. If a relief manager stays on the premises while the resident manager is on vacation, does the exemption apply?
A. No. Since the employee would not technically be domiciled at the complex, the exemption would not apply and minimum wage and overtime would need to be paid to the replacement employee. When employees work shifts of 24 hours or more, the employer and employee may agree to deduct up to eight hours of sleep time (provided adequate sleeping facilities are furnished by the employer), bona fide meal periods and other periods when the employee is completely relieved of all duties. If sleep time is more than eight hours, only eight hours may be credited. If there is no agreement providing for these deductions, all hours must be compensated. When sleep time is interrupted, that time must be paid. If the interruptions are so frequent that the employee is unable to get at least five continuous hours of sleep, then the employer must pay all of the sleep time.
 
Q. How does the law apply if I want to schedule an employee for a 24-hour shift if they are not managers or assistant managers of multi-unit accommodations? May I still take the same deductions for sleep time and bona-fide meal periods during which time the employee is relieved of all duties?
A.
Yes. You may make the same deductions as noted above for any employee scheduled for shifts of 24 hours or more as it relates to bona-fide meal periods and sleep time, provided the employee is relieved of all duties during those periods.
 
Q. How are compensable hours determined for employees who live on the premises when there is federal coverage?
A. When employees live on the premises, it is difficult to determine the exact number of hours worked. Any reasonable agreement that takes into consideration all of the pertinent facts will be accepted. Employers should take care to document the agreement in writing and be certain that employees will be properly compensated for all hours worked. 
 
Updated June 2017

 

DISCLAIMER 
Nothing on this website is intended as legal advice.  Any responses to specific questions are based on the facts as we understand them, and not intended to apply to any other situations.  This communication is not an agency order.  If you need legal advice, please consult an attorney.  We attempt to update the information on this website as soon as practicable following changes or developments in the laws and rules affecting Oregon employers, but we make no warranties or representations, express or implied, about whether the information provided is current.  We urge you to check the applicable statutes and administrative rules yourself and to consult with legal counsel prior to taking action that may invoke employee rights or employer responsibilities or omitting to act when required by law to act.
 
TECHNICAL ASSISTANCE FOR EMPLOYERS
800 NE OREGON STREET, STE 1045
PORTLAND, OR  97232
971-673-0824
 
 
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