I own an adult residential facility for adults with developmental disabilities. I have two staff members (husband and wife) who have requested to live at the facility. Assuming that they will work more hours, and be paid at the appropriate overtime rates, am I able to deduct the cost of room and board from their wages. If so, what is the fair rate for an individual(s) who has total access to all the amenities, food, car etc.
Curiously,
Alex

The question of whether the deduction is legal or not depends upon who is benefitting from the arrangement. If it is a case where they are required to live at the facility, then you may not able to deduct for room and board. However, if you offer it to them as a convenience, it may be. You should talk with the state about this matter and get their opinion. http://www.dir.ca.gov/DLSE/dlse.html

I'd like to add some additional information for the individual who has a husband and wife team that wish to live at the residential facility - there are several questions that have be addressed first - the first is are they going to be available 24 hours a day for emergencies or unscheduled issues that pop up - if so then charging them rent would not be a good idea - if, however they go off duty when there shifts are up -and they are not on call and want to leave when they want to - then charging them the Market Value of what the board and lodging is worh - is the appropiate way to handle the situation - as a workers compensation insurance auditor - I would advise you to have them write a separate check for the board and lodging separate from your paying them - then if and when they want to move out they can - and there will not be any disputes or hard feelings - that of course is dependent on the information I interpreted - that you do not need resident managers living on the facility