Earlier today, Governor Snyder signed a bill which raises Michigan's minimum wage incrementally over the next four years. Under the Fair Labor Standards Act (FLSA), a federal law, nannies are household employees and are classified as non-exempt. This means that a nanny MUST be paid for every hour worked AT OR ABOVE minimum wage, with overtime in accordance with state law. For live in nannies, overtime is straight hourly rate. For live out nannies, overtime is one-and-a-half times their hourly rate.
So what does this new law mean for Michigan nannies? It means an increase in the minimum legal amount you can be paid for your work. Currently, Michigan minimum wage is $7.40/hour. Over the next several years the following increases will take place:
September, 2014: $8.15/hour
January, 2016: $8.50/hour
January, 2017: $8.90/hour
January, 2018: $9.25/hour
Beginning in 2019, minimum wage will automatically increase each year based on a rolling five year average consumer price index for the Midwest, which has consistently been about 2.6%. These increases are applicable to all workers age 18 and over in the state of Michigan.
Most nannies in Michigan make more than minimum wage, however we believe it is important for both nannies and employers to be aware of what the legal minimums are with regard to nanny pay.
Nanny wages vary wildly, making it difficult to state a true average or "going rate" because so many factors affect nanny wages. Location, experience, training/education, job responsibilities, and employer budget all factor in to what a nanny earns. Based on conversations within the MPNA nanny community, we know of nannies earning anywhere from $10-$30 per hour. The average for the metro Detroit area seems to be around $15-$16/hour, with slightly higher rates in Ann Arbor and slightly lower rates in other areas of the state.
Tuesday, May 27, 2014
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