5
Managing Employee Housing
a “License Agreement” does not make it a license.
Without a legally-sound written agreement, courts
will decide if the housing arrangement is a lease
or a license when there is a dispute. A written
agreement lets employers and workers agree
on mutual terms before there is a problem; and,
ideally, it creates clear expectations that help
prevent misunderstandings and disputes.
Considerations
A housing agreement should set clear expectations
for using and maintaining the housing. When
preparing a housing agreement with an attorney,
farms may consider some of the following issues:
• Dening Occupants Oen, employer’s want
some control over who will be living in the
housing. In single family housing, for example,
the owner / manager may choose to limit the
occupants to the employee, a spouse and
children. While temporary visitors may be
acceptable, dairies may want to avoid a situa-
tion in which extended family, such as cousins
or grandparents, or friends live in the housing
for an indenite amount of time without prior
approval. If family, especially children, will be
living with the employee, the agreement should
specify that work areas are o-limits to the
worker’s family (like manure lagoons, milking
parlors, etc.).
• Housing Rules A housing agreement is also an
opportunity to state that the employee must
follow house rules. The agreement should also
specify the consequences for breaking the
house rules. Dairies can dene the rules within
the agreement or in a separate document
signed by the employee. Rules can include quiet
hours, responsibility for visitors, pets and more.
• Utilities The housing agreement should state
who is responsible for paying utilities. If paid by
the employer, the agreement can state a cap
above which the employee becomes respon-
sible for the cost. One approach is to set up
utilities in the employee’s name so that the dairy
is not responsible for the cost if the employee
quits.
• Insurance A housing agreement may also re-
quire employees to acquire renter’s insurance. It
is good practice to check with the dairy’s liability
insurance company to ask about coverage for
worst-case scenarios.
• Rent or Wage Deductions Some dairies use
wage deductions to collect payment for
housing. State and federal law may limit the
amount that can be charged for lodging as a
wage deduction – either a set dollar value per
day or up to the reasonable cost to provide the
housing. Wage deductions have the benet of
easy administration. Other dairies may choose
to charge rent.
• Right to Inspections The housing agreement
should specify the owner’s right to periodic
housing inspections. This ensures the dairy
can identify and perform any necessary repairs
in a timely manner. Housing inspections are
described in more detail in Routine Inspections
on Page 6.
• Repairs and Renovations The agreement
should state whose responsibility it is to arrange
and pay for repairs. Oen, that depends on the
type of maintenance needed. For example,
a major appliance malfunction is usually the
responsibility of the owner, whereas routine
upkeep like changing lightbulbs are the respon-
sibility of the occupant. The agreement may also
specify that it is the occupant’s responsibility to
notify management of repair needs and outline
the process for occupants to request repairs.
• Employment Separation Check local laws
before evicting any employee aer employment
ends to avoid inadvertent violations. The
Housing Agreement can address the process
and timeline for moving out aer separation.
A housing agreement is a legally binding contract.
Farms are encouraged to seek legal advice in
creating the agreement. To accommodate non-
native English speakers, owners and managers
should have a translated copy of the housing
agreement. An oicial legal translator should be
consulted to translate the agreement.