Stipend changes - RSS feed

Anonymous
Anonymous wrote:Except some people are trying to virtue-signal and say that they are employers who minimum wage. Others are pointing out that this is BS, because the virtue signalers are not actually paying minimum wage for all of the time that they have the au pair available. Pay your au pair what ever you want past the minimum, but don’t lie to yourself/others that you are compliant with minimum wage laws.


So where is this law?

In reality HFs have APs on call way way way more than 45 hours/week. A HF could have their AP work from 3pm-10pm one day and from 7am-3pm the next. And many many other employers, with shift schedules, are the same.
Anonymous
Anonymous wrote:
Anonymous wrote:Except some people are trying to virtue-signal and say that they are employers who minimum wage. Others are pointing out that this is BS, because the virtue signalers are not actually paying minimum wage for all of the time that they have the au pair available. Pay your au pair what ever you want past the minimum, but don’t lie to yourself/others that you are compliant with minimum wage laws.


So where is this law?

In reality HFs have APs on call way way way more than 45 hours/week. A HF could have their AP work from 3pm-10pm one day and from 7am-3pm the next. And many many other employers, with shift schedules, are the same.


Whackadoodle!
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Except some people are trying to virtue-signal and say that they are employers who minimum wage. Others are pointing out that this is BS, because the virtue signalers are not actually paying minimum wage for all of the time that they have the au pair available. Pay your au pair what ever you want past the minimum, but don’t lie to yourself/others that you are compliant with minimum wage laws.


So where is this law?

In reality HFs have APs on call way way way more than 45 hours/week. A HF could have their AP work from 3pm-10pm one day and from 7am-3pm the next. And many many other employers, with shift schedules, are the same.


Whackadoodle!


You: you’re not compliant with minimum wage laws if you don’t pay on-call time
Me: that’s not what minimum wage laws require
You: wackadoodle!
Anonymous
Anonymous wrote:
Anonymous wrote:To the PP: minimum wage where I am with room and board on top, then? There's no downward adjustment of minimum wage to account for the room and board? Thank you, just making sure I've got it right and I appreciate your super helpful response!


The stipend is already based on a formula to deduct 40% for room and board. However, it does not take localities into account (both minimum wage and cost of living differences).

Many families just pay stipend because of this. You will find some families believe they're morally obligated to pay full minimum wage without deductions. This decision is ultimately up to you on what you believe is fair and doable for your situation.

Also, there has not been an adjustment to the stipend for many years now. So it's potentially overdue.


OP here. This seems to explain the basis for the lawsuit. Thanks for your help!

It sounds like I can take hourly minimum wage for my state x 45 hours and then subtract whatever 40% of that weekly total is and get a solid estimate for reasonable stipend, yes? For me it comes to $273 per week or an additional $3796 per year.
Anonymous
*additional meaning over the minimum stipend.
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:To the PP: minimum wage where I am with room and board on top, then? There's no downward adjustment of minimum wage to account for the room and board? Thank you, just making sure I've got it right and I appreciate your super helpful response!


The stipend is already based on a formula to deduct 40% for room and board. However, it does not take localities into account (both minimum wage and cost of living differences).

Many families just pay stipend because of this. You will find some families believe they're morally obligated to pay full minimum wage without deductions. This decision is ultimately up to you on what you believe is fair and doable for your situation.

Also, there has not been an adjustment to the stipend for many years now. So it's potentially overdue.


OP here. This seems to explain the basis for the lawsuit. Thanks for your help!

It sounds like I can take hourly minimum wage for my state x 45 hours and then subtract whatever 40% of that weekly total is and get a solid estimate for reasonable stipend, yes? For me it comes to $273 per week or an additional $3796 per year.



It is unclear whether you can deduct 40% for room and board, you also need to pay time and a half for overtime, and comply with mandatory sick laws, etc.
Anonymous
No you don’t because she’s not an employee.
Anonymous
Anonymous wrote:No you don’t because she’s not an employee.



Then why are you advancing the theory that people have to pay minimum wage?
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:To the PP: minimum wage where I am with room and board on top, then? There's no downward adjustment of minimum wage to account for the room and board? Thank you, just making sure I've got it right and I appreciate your super helpful response!


The stipend is already based on a formula to deduct 40% for room and board. However, it does not take localities into account (both minimum wage and cost of living differences).

Many families just pay stipend because of this. You will find some families believe they're morally obligated to pay full minimum wage without deductions. This decision is ultimately up to you on what you believe is fair and doable for your situation.

Also, there has not been an adjustment to the stipend for many years now. So it's potentially overdue.


OP here. This seems to explain the basis for the lawsuit. Thanks for your help!

It sounds like I can take hourly minimum wage for my state x 45 hours and then subtract whatever 40% of that weekly total is and get a solid estimate for reasonable stipend, yes? For me it comes to $273 per week or an additional $3796 per year.



It is unclear whether you can deduct 40% for room and board, you also need to pay time and a half for overtime, and comply with mandatory sick laws, etc.


You're building in a lot of assumptions here.

1) You're intending to use all 45hrs a week rather than <40 or variable from week to week. Some of these posters claim they're within minimum wage because their AP only works <26hrs a week (or whatever the appropriate number is to get to the minimum stipend). This is where the discussion about "on call" is stemming from.
2) Whether 40% is legal and appropriate in your state. Some agencies have suggested that you should be in full compliance with state and local laws, but do not offer further assistance is figuring out what that is. Some of the confusion around the lawsuit is that states have different local laws. One state might not permit 40% for room and board. Other states might have some vague statement about deducting "market value" of room and board. 40% is the rate set by the DoS within the formula.
3) As PP pointed out, whether you take into account things like overtime (for hours between 40-45). DoS states that APs get a stipend, not a wage. Overtime and other protections apply to wage work. Some posters don't delineate a difference between these and feel morally obligated to offer more money because work is work.
4) You should keep track of other bonuses provided as compensation. Extra paycheck at the holidays? Gift cards? Some of us prefer giving performance based bonuses rather than extra stipend because it breeds better work and motivation rather than entitlement. I'd strongly encourage you to consider this approach unless you're persuaded by the moral argument to be paying more every week.
5) Ask your LCC/Area Director what the typical action by families is in your area. Again, unless you're of the moral persuasion and have already made up your mind, you may not want to be the family outside the norm.

Anonymous
I do not know a single family that pays $273/week. Most people I've talked to pay the stipend or round up to $200/week, then bump up the pay if the AP stay for a 2nd year. I only know families with school-aged kids.
Anonymous
Anonymous wrote:I do not know a single family that pays $273/week. Most people I've talked to pay the stipend or round up to $200/week, then bump up the pay if the AP stay for a 2nd year. I only know families with school-aged kids.


Do you ask every family you know in the program?
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:To the PP: minimum wage where I am with room and board on top, then? There's no downward adjustment of minimum wage to account for the room and board? Thank you, just making sure I've got it right and I appreciate your super helpful response!


The stipend is already based on a formula to deduct 40% for room and board. However, it does not take localities into account (both minimum wage and cost of living differences).

Many families just pay stipend because of this. You will find some families believe they're morally obligated to pay full minimum wage without deductions. This decision is ultimately up to you on what you believe is fair and doable for your situation.

Also, there has not been an adjustment to the stipend for many years now. So it's potentially overdue.


OP here. This seems to explain the basis for the lawsuit. Thanks for your help!

It sounds like I can take hourly minimum wage for my state x 45 hours and then subtract whatever 40% of that weekly total is and get a solid estimate for reasonable stipend, yes? For me it comes to $273 per week or an additional $3796 per year.



It is unclear whether you can deduct 40% for room and board, you also need to pay time and a half for overtime, and comply with mandatory sick laws, etc.


You're building in a lot of assumptions here.

1) You're intending to use all 45hrs a week rather than <40 or variable from week to week. Some of these posters claim they're within minimum wage because their AP only works <26hrs a week (or whatever the appropriate number is to get to the minimum stipend). This is where the discussion about "on call" is stemming from.
2) Whether 40% is legal and appropriate in your state. Some agencies have suggested that you should be in full compliance with state and local laws, but do not offer further assistance is figuring out what that is. Some of the confusion around the lawsuit is that states have different local laws. One state might not permit 40% for room and board. Other states might have some vague statement about deducting "market value" of room and board. 40% is the rate set by the DoS within the formula.
3) As PP pointed out, whether you take into account things like overtime (for hours between 40-45). DoS states that APs get a stipend, not a wage. Overtime and other protections apply to wage work. Some posters don't delineate a difference between these and feel morally obligated to offer more money because work is work.
4) You should keep track of other bonuses provided as compensation. Extra paycheck at the holidays? Gift cards? Some of us prefer giving performance based bonuses rather than extra stipend because it breeds better work and motivation rather than entitlement. I'd strongly encourage you to consider this approach unless you're persuaded by the moral argument to be paying more every week.
5) Ask your LCC/Area Director what the typical action by families is in your area. Again, unless you're of the moral persuasion and have already made up your mind, you may not want to be the family outside the norm.



THANK you so much for this information and for so clearly laying it out! Much appreciated.
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