Q. Does a group home for juvenile offenders qualify as a residential care facility?
A. No. To qualify as a residential care facility, the primary purpose of the facility must be the care of the sick, the aged, the mentally ill or the emotionally disturbed. Examples are nursing homes, rest homes, convalescent centers, and homes for developmentally disabled individuals.
 
Q. May employees in residential care facilities be charged a reasonable value for lodging?
A. If an employee is required to live on the premises as a condition of employment, the employee must receive no less than minimum wage and any applicable overtime. The employer may not deduct the rental value of the housing under these circumstances, because the housing is not considered to be for the "private benefit" of the employee.
 
Q. If meals are provided, may employees be charged the reasonable value of the meals?
A. Yes. Meals furnished by the employer in this instance are for the "private benefit" of the employee. If eating with patients is a job requirement, the time spent must be counted as hours worked.

NOTE: When meals and (or) lodging are provided solely as a benefit for the employee, the employer may charge the reasonable value of the benefits. Payroll deductions for employee benefits must be authorized in writing by the employee.

Q. If an employee lives on the premises, what hours may be deducted for off-duty time, such as sleeping and eating?
A. If the employee resides on the employer´s premises permanently, or for extended periods of time, any reasonable agreement between the employer and the employee as to hours worked will be acceptable. An agreement that does not truly reflect the employment arrangement will not be considered reasonable.
 
Q. What is "applicable overtime" for residential care facilities?
A. In hospitals and residential care facilities the employer has two options:

• Pay overtime for all hours employees work over 40 in a workweek; or
• Make an agreement or understanding prior to the work performance to pay 1.5 times the employee´s regular rate for hours worked over eight in any day and after 80 hours worked in a period of 14 consecutive days. Once this option is chosen for an individual employee, the agreement must remain in effect unless the employer has a justifiable business reason for changing the overtime option.

 
Q. If employees work 48-hour weekend shifts, are employers required to include all of those hours as time worked?
A. When employees work shifts of 24 hours or more, employers and employees may agree to deduct up to eight hours of sleep time as long as the employees actually get that time.
 
Q. Is it enough to have an informal agreement that eight hours of sleep time will be allowed?
A. No. There must be a formal agreement and actual sleep hours must be scheduled. Every time the sleep period is interrupted, the interruption is counted as work time and must be paid. If the sleep time is less than five continuous hours, the entire sleep period must be paid.
 
Q. Do meal periods count as time worked?
A. If the employee is required to eat with the residents, that time is considered work time. Even if the employee eats with the residents by choice and then helps residents with their meals or becomes the source of supervision for the meal period, this will count as time worked.
 
Q. If an individual takes care of elderly people in his or her home and hires two part-time people to help care for them, would the home be considered a residential care facility?
A. Yes, and all of the minimum wage and overtime requirements would apply to any employee hired.
 
Q. If an employee is scheduled to work from 5:00 p.m. to 8:00 a.m. and sleeps part of that time, may the employer deduct the sleep time from hours worked?
A. Since the shift is less than 24 hours, all of the hours must be paid even if the employee is allowed to sleep part of that time.
 
Q. Are employers required to pay sleep time at the same rate as other hours work?
A. Employers may make agreements with employees to pay less than the regular rate for sleep time, but not less than the minimum wage.
 
Q. If an employer terminates an employee who lives on the premises, may the employer require the employee to move immediately?
A. It is important to have written policies regarding termination and vacating the premises. Employers should have legal advice in adopting such a policy. Employees should read and understand the policy prior to employment.
 
Q. If an employer hires a couple to help in a residential care facility, is one salary sufficient compensation?
A. No, each person must be paid separately, according to the individual hours worked.
 

 
 

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The Technical Assistance for Employers unit offers employer seminars, handbooks, and other materials covering a number of topics. For additional information, visit our website at www.oregon.gov/boli/ta  or call our Employer Assistance line.

 

Technical Assistance for Employers

Bureau of Labor and Industries

800 NE Oregon Street, Suite 1045

Portland , OR 97232

971-673-0824

www.oregon.gov/boli

These materials were prepared as a general summary and teaching guide. The mission of the Technical Assistance for Employers Program is to promote compliance with civil rights and wage and hour laws through education. Technical Assistance does not provide legal advice. In order to determine the legality of any matter or to protect your legal rights, you should contact an attorney. Check the yellow pages of your telephone directory or contact the Oregon State Bar Lawyer Referral Service at 1-503-620-0222 or 1-800-452-7636. THIS INFORMATION IS AVAILABLE IN AN ALTERNATE FORMAT.