Michigan Minimum Wage Increase

Effective October 1, 2006, the minimum wage in Michigan increases $6.95 per hour.

This is a good time to remind nanny employers of a few payroll rules that commonly trip up employers and lead to unfavorable rulings when wage and hour disputes occur.

• Nannies are non-exempt workers. You may pay a salary, but you must stipulate the hourly wage the salary is based on. Absent a statement of hourly wage, a court will divide the salary by a 4o hour work week to determine the hourly wage.
  
• Nannies are entitled to overtime. The live out nanny must be paid the overtime differential (time and one half) for all hours over 4o worked in a week. The live in nanny must be paid for every hour worked but is not entitled under law to the overtime differential.
• Most states have established minimum pay frequencies for non-exempt workers - the maximum interval between wage payments to the worker. Find your state's pay frequency rules here.

There are many increases to state minimum wages scheduled to occur within the next several months. Please insure that the salary and work agreement you have in place with your nanny is fully compliant to current regulations.