Tuesday, July 22, 2008
Minimum Wage for Nanny Payroll Increases
The Federal minimum wage, which covers nannies, maids, housekeepers, and other domestic service workers, increases to $6.55 per hour on July 24, 2008.
There are substantial revisions to the minimum wage for nanny payroll across the country this month. Please refer to our chart "Minimum Hourly Wage Rates for Nanny Payroll by State" for the most recent information on your state.
The Minimum Wage Compliance Calculator tool, part of our Suite of Free Nanny Tax Calculators available to all domestic employers has been updated today to reflect the new rates.
Nanny employment is specifically covered by the Fair Labor Standards Act's minimum wage provisions. Under Federal law, LIVE-IN nannies (or housekeepers, maids, etc) are not entitled to the overtime differential of 1.5 times the normal hourly rate. Maryland and New York specifically provide the overtime differential to live-in domestics.
As a practical matter, in today's competitive nanny market, employers almost always have to offer a compensation package well in excess of current minimum wage levels.
There are substantial revisions to the minimum wage for nanny payroll across the country this month. Please refer to our chart "Minimum Hourly Wage Rates for Nanny Payroll by State" for the most recent information on your state.
The Minimum Wage Compliance Calculator tool, part of our Suite of Free Nanny Tax Calculators available to all domestic employers has been updated today to reflect the new rates.
Nanny employment is specifically covered by the Fair Labor Standards Act's minimum wage provisions. Under Federal law, LIVE-IN nannies (or housekeepers, maids, etc) are not entitled to the overtime differential of 1.5 times the normal hourly rate. Maryland and New York specifically provide the overtime differential to live-in domestics.
As a practical matter, in today's competitive nanny market, employers almost always have to offer a compensation package well in excess of current minimum wage levels.
