Not sure they would consider a garage a living area but cool got it thank you. Often living areas are defined by heated space.
Like Chuck said, Improper.
I am for and recommend drain pans in all WH installations in garages. If it leaks, it can still cause damage to property even if its on a slab. People do store personal property in garages. I am looking out for MY client and I always explain it just that way. My clients always appreciate the attempt to look out for their best interest.
They fixed it.
Sam how does the pan drain?