CAMP COMPENSATION

WAGE ORDER 5 & LABOR CODE § 1182.4 

Compensating Certain Camp Employees Correctly

California Industrial Welfare Commission Wage Order No. 5-2001 governs employees in the public housekeeping industry, including camps and similar facilities. (IWC Wage Order No. 5-2001, § 2(P) § (3). Covered establishments include:

• Camps
• Resorts
• Lodging establishments
• Retreat centers

Under Wage Order 5, employees are generally entitled to:

• Minimum wage (Lab. Code § 1182.12; Wage Order 5 § 4)
• Daily and weekly overtime (Wage Order No. 5-2001, § 3(A), (E))
• Meal and rest breaks (Wage Order No. 5-2001, §§ 10–11)
• Recordkeeping requirements (Wage Order 5 § 7)

However, California Labor Code § 1182.4 establishes a specific exception for certain employees of nonprofit organized camps.

Labor Code § 1182.4: Camp Employee Wage Exception

California Labor Code § 1182.4 allows qualifying nonprofit camps to compensate certain employees under a modified wage structure.

This provision applies when the camp:

• is operated by a nonprofit organization
• primarily serves youth under 18 years of age
• operates an organized camp – “Organized Camp” means an organized camp as defined in Health and Safety Code § 18897 that meets the standards of the American Camping Association
  

Labor Code § 1182.4(a): 85% Rule 

The statute recognizes the unique structure of camps and allows alternative pay practices for certain camp program staff.

Covered Positions

The wage exception generally applies to staff directly responsible for the camp program and supervision of campers, including:

• Camp Counselors
• Camp Program Directors
• Activity Leaders or Program Instructors
• Students employed as seasonal camp staff

(Lab. Code § 1182.4(a)).

These employees typically perform duties such as:

• Supervising campers
• Leading recreational or educational activities
• Overseeing camp programming
• Mentoring and supporting youth participants

Employees who primarily perform operational roles such as food service, maintenance, housekeeping, or administrative support generally do not qualify for the exemption and must be paid according to standard minimum wage and overtime rules under Wage Order 5.

85% Minimum Wage Rule for Camp Staff

California Labor Code § 1182.4(a) allows certain nonprofit camps to compensate qualifying camp employees at 85 percent of the state minimum wage. Under this provision:

• Eligible camp employees may be paid a salary equal to 85% of the applicable California minimum wage.
• Compensation is calculated based on a 40-hour workweek.
• The employee receives this weekly compensation regardless of the number of hours actually worked.

As a result:

• Camps may provide a fixed weekly salary or stipend
• The weekly compensation equals 85% of minimum wage multiplied by 40 hours
• Standard overtime provisions under Wage Order 5 generally do not apply to qualifying employees

This structure recognizes that camp counselors and program staff often work irregular schedules that include evening activities, supervision duties, and overnight responsibilities.

Meals and Lodging Deductions

Many camps provide employees with meals and on-site lodging during the camp season. California law permits employers to credit the value of meals and lodging against wages under certain conditions.

These rules are governed by:

• California Labor Code § 1182.4(b)
• IWC Wage Order No. 5-2001 §10

Written Authorization Required – 85% Rule

The employer may deduct the value of meals or lodging only if the employee voluntarily agrees in writing. (Lab. Code § 1182.8; Wage Order 5 § 10(C)).

The written agreement should clearly state:

• that meals and/or lodging will be provided
• the value assigned to those benefits
• the employee’s voluntary authorization for the deduction
  

Deductions Must Reflect Fair Value

The deduction must reflect the actual or fair value of the meals or lodging provided, and it must comply with the maximum meal and lodging credit amounts established under California law. (Wage Order 5 § 10(C); Lab. Code § 1182.8).

Employers should avoid arbitrary deductions and instead ensure that any deduction is reasonable and properly documented.

Meals and Lodging Must Be Voluntary

Meals and lodging must be voluntarily accepted by the employee for the credit to apply.

(Wage Order 5 § 10(A)).

If the employee is required to live on-site as a condition of employment, the employer should carefully review the wage and hour implications, as additional rules may apply.

Additional Compliance Considerations

Even when camps utilize the Labor Code § 1182.4 exception, several employment laws still apply.

54 Hour Confusion

In addition to the modified wage structure permitted under California Labor Code § 1182.4, California also recognizes that camp counselors and program staff often work irregular schedules that include overnight supervision and extended program activities. For this reason, Industrial Welfare Commission Wage Order No. 5-2001 § 3(E) provides a special overtime provision for employees of an organized camp. Under this rule, qualifying camp counselors and program counselors are not deemed to be employed for more than 54 hours in a workweek for purposes of overtime calculations, even if their actual hours supervising campers exceed that amount. This provision reflects the residential nature of many camps, where counselors remain responsible for campers during evenings and overnight periods, and allows camps to structure schedules differently than traditional workplaces. However, this exception generally applies only to camp counseling and programming roles, and not to operational staff such as kitchen, maintenance, or administrative employees, who remain subject to the standard overtime requirements under IWC Wage Order No. 5-2001 § 3.

Overtime – Camp Counselors and Program Directors 

Camp counselors at an organized camp may receive overtime in some situations, but certain California laws modify the standard overtime rules because of the unique nature of residential camps. Under California Labor Code § 1182.4(a), if a camp counselor, program counselor, or student employee of an organized camp is paid a weekly salary equal to at least 85% of the state minimum wage for a 40-hour week, the employee is not subject to the Industrial Welfare Commission’s minimum wage or maximum hour orders. In that situation, the counselor typically does not receive overtime, even if the number of hours worked exceeds 40 in a week. However, if a counselor is not paid under the 85% weekly salary provision, then the employee remains subject to the overtime rules under IWC Wage Order No. 5-2001. Wage Order 5 also includes a special rule for organized camps stating 

that counselors are not deemed to work more than 54 hours in a workweek for overtime purposes (Wage Order 5 § 3(E)), meaning overtime generally would not be owed unless hours exceed that threshold. As a result, whether camp counselors receive overtime depends on how they are compensated and whether the camp is applying the organized camp provisions allowed under California law.

Workers’ Compensation

Seasonal camp employees must be covered under California workers’ compensation laws.

(Lab. Code § 3700).

Child Labor Laws

If minors are employed as camp staff, the employer must comply with California child labor laws, including:

• Work permits for minors (Cal. Educ. Code § 49160)
• Limitations on hours for certain age groups (Lab. Code §§ 1391).

Recordkeeping

Employers must maintain payroll and employment records for camp employees, including wage agreements and written authorizations for deductions. (Wage Order 5 §7).

Best Practices for Churches and Nonprofit Camps

To ensure compliance with California labor law, church run camps and nonprofit religious camps should consider the following best practices:

1. Clearly define camp staff roles – Distinguish program staff from operational staff to determine exemption eligibility.

2. Use written seasonal employment agreements – Document the 85% minimum wage calculation and weekly compensation structure.

3. Obtain written consent for meal and lodging deductions – Maintain signed authorization forms for payroll records.

4. Review compensation annually – Ensure calculations reflect the current California minimum wage.

Final Thoughts

California Labor Code § 1182.4 provides valuable flexibility for nonprofit camps that serve youth by allowing modified wage structures for camp counselors, program staff, and student employees. These provisions recognize the unique nature of seasonal camp ministry while still requiring thoughtful compliance with California employment law.

By properly classifying staff, documenting compensation agreements, and following the rules governing meal and lodging deductions, churches and nonprofit camps can operate their programs with both legal compliance and ministry integrity.