For Adult Foster Care Home owners, staying on top of regulatory changes is essential to running a compliant and successful facility. With new requirements for earned sick time and minimum wage increases taking effect, it’s crucial to adjust policies and payroll systems to avoid fines and maintain smooth operations.
Recent updates to Mandatory Earned Sick Time (HB4002) and minimum wage regulations directly impact AFC Homes, Adult Foster Care Group Homes, and other Residential Assisted Living providers. Here’s what you need to know and how to prepare.
Starting October 1, 2025, businesses with fewer than 10 employees must provide:
✔ 1 hour of sick time for every 30 hours worked, up to 40 hours per year
✔ The option to grant 40 hours of sick time upfront instead of accrual
For businesses with 10 or more employees, effective February 21, 2025:
✔ 1 hour of sick time for every 30 hours worked, up to 72 hours per year
✔ The option to grant 72 hours of sick time upfront instead of accrual
New businesses, including newly opened Adult Residential Homes, have three years after hiring their first employee to comply with these new regulations.
Effective February 21, 2025, Michigan’s minimum wage has increased from $10.56 per hour to $12.48 per hour. If you operate a Licensed Adult Foster Home Provider business, you must ensure all staff are paid according to the updated wage law.
To ensure your AFC Licensed Home or Home Care Business complies with these new laws, follow these key steps:
✅ Create a written earned sick time policy for employee signatures and acknowledgment
✅ Outline the process for requesting sick time, including advance notice for foreseeable absences
✅ Clarify procedures for last-minute sick time requests
✅ Post the ESTA (Earned Sick Time Act) poster in a visible location for all employees
✅ Update personnel policies to reflect new sick leave and wage laws
✅ Implement a tracking system to monitor sick time accrual and usage
✅ Adjust employee wages to comply with the new minimum wage
For owners of Adult Foster Care Homes, these updates will impact staff scheduling, payroll management, and budgeting. Ensuring compliance now will help avoid legal penalties and keep employees satisfied and retained, which is crucial in the competitive senior care and foster care for adults with disabilities industry.
Operating a AFC group home facility means staying proactive with regulations, licensing requirements, and employee policies. Taking these steps now ensures your AFC Home or Assisted Living Facility remains compliant and continues to provide excellent care.
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