The federal minimum wage increases to $7.25 an hour, effective July 24, marking the third and final increase scheduled from legislation signed by President George Bush in 2007.
More than a dozen states will increase minimum wages July 24 to match the federal minimum wage increase: Delaware, Idaho, Indiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, and Wisconsin. The District of Columbia sets its minimum wage at the federal minimum rate plus $1, bringing the rate to $8.25, effective July 24. Ohio's minimum wage for nanny employers will remain at $7.30 an hour - there are statewide increases for larger employers only.
The state minimum wage increased in Illinois, Kentucky, and Nevada effective July 1, 2009:
- Illinois, $8 an hour, from $7.75.
- Kentucky, $7.25 an hour, from $6.55.
- Nevada, $6.55 an hour for employees with qualifying health benefits, from $5.85; and $7.55 an hour for all other employees, from $6.85.
The weekly stipend for a typical au pair will also increase July 24 to $195.75. Specialty classes of au pairs may increase more - refer to your contract. Remember, while no employment taxes (Social Security, Medicare, or Unemployment) are due on the au pair stipend, it is subject to Federal Income Tax and most au pairs do have a Federal income tax obligation.