New Overtime Exemption Thresholds for Adult Foster Care Homes

As reported previously in AFC Wage & Labor Tips, it is not uncommon for an AFC owner to be subject to an audit from Wage & Labor. Whether from an employee complaint or a Wage & Labor audit, knowing the rules can reduce or eliminate severe penalties and back wage payments in Adult Foster Care Homes.

With the new overtime exemption rules effective July 1, 2024, it’s crucial to review AFC staff pay rates for compliance to avoid audit issues for your Adult Foster Care Home.

Calculating AFC Staff Salary Pay to Meet the Requirements

1. Confirm the weekly or biweekly “salary” amount reflects the hours worked at a rate of 40 hours plus OT and meets or exceeds the Michigan Minimum Wage requirement for your AFC Home.
2. Detail on the staff’s pay agreement the number of hours in the pay period their “salary” amount includes for the Adult Foster Care staff.
3.   If the staff works inconsistent hours in each pay period, state on the employee’s pay agreement the rate of pay they receive for additional hours worked in your Adult Foster Care Home.
4.  Review the pay agreement information with the staff and require their signature on the document to ensure compliance in your AFC Licensed Home.

Following these steps will set your mind at ease.

Sleep Better at Night in Your Adult Foster Care Home

Running your AFC home can feel difficult at times, but it doesn’t have to. Paying AFC staff may seem complicated and may strike fear of Wage & Labor penalties and back pay if done incorrectly. When you follow the guidelines set by Wage & Labor and know how to calculate the minimum rates to charge to cover payroll, your overhead, and yourself with a profit, you can sleep better at night in your Adult Foster Care Home.

Do you struggle with understanding what to charge for minimum rates to cover payroll, your overhead, and yourself with a profit? Care Provider Solutions can help your Adult Foster Care business.

Take the first step by completing our assessment for personalized support:

• Develop clarity for your Adult Foster Care Home
• Regain your sanity while managing your AFC Homes
• Create an action plan for your AFC Licensed Home