Employee Housing Assistance—Legal Considerations for California Public Agencies

By Kelly Tuffo, Heather DeBlanc, and Oliver Yee

Heather DeBlanc and Oliver Yee are Partners and Kelly Tuffo is an Associate at Liebert Cassidy Whitmore, one of the largest private sector and public employment firms in the U.S.

In light of California’s housing shortage and high housing costs, public employees and candidates struggle to find affordable housing options. In turn, public agencies may be considering measures to help employees find viable housing options near the workplace, and may even consider investing in employee housing. Local affordable housing for employees and candidates can improve employee recruitment and retention, strengthen the connection between employees and the communities they serve, increase employee availability for overtime shifts, reduce traffic congestion, and keep tired shift workers off the road.

There are, however, a myriad of legal considerations and compensation issues that public agencies should evaluate before offering employee housing as a fringe benefit, including the following: