Minimum wage rates are on the rise for 2022 in many states, counties, and cities across the country.
Nannies and other household employees are covered by the Fair Labor Standards Act, which means they must be paid the prevailing minimum wage rate.
The federal minimum wage rate was raised to $7.25/hour in 2009. Since then, states, counties, and cities have established their own, higher rates, which then became the applicable rate. In fact, half of the U.S. states will increase their minimum wage rates in 2022.
In California, for example, right now the minimum wage rate is $13/hour for employers with 25 or fewer employees. That supersedes the federal rate and becomes the applicable rate for household employers. However, if you live in San Fransisco, Los Angeles, or more than 25 other California cities with a higher local minimum wage, then that city rate applies. For example, Los Angeles has a $15/hour rate for small employers, which would be the hourly minimum wage for a nanny working in that city.
It is important to keep an eye on the minimum wage especially if you pay close to or at that rate. Some states and cities automatically increase their rates annually.
Paying anything less than minimum wage is a wage violation and can cause trouble for the family with household help. A domestic employer can be sued by their worker for back wages and/or be fined by their state’s labor agency for not following minimum wage rates.
To help keep you compliant, here is your 2022 state-by-state minimum wage rate guide.
States and cities increasing minimum wage rates for 2022
These rates are effective on January 1, 2022, unless otherwise noted.
|Arizona – Flagstaff||$15.50|
|California||$14 (for 25 or fewer employees)|
|Colorado – Denver||$15.87|
|Connecticut||$14 (effective July 1, 2022; until then $13/hr)|
|Florida||$11 (effective September 30, 2022; until then $10/hr)|
|Maine – Portland||$13|
|Maine – Rockland||$13|
|Maryland||$12.20 (for 14 or fewer employees)|
|Maryland – Montgomery County||$14 (for 10 or fewer employees; effective July 1, 2022; until then $13.50/hr)|
|Minnesota||$8.42 (for small employers)|
|Minnesota – Minneapolis||$13.50 (for small employers; effective July 1, 2022; until then $12.50/hr)|
|Minnesota – St. Paul||$10.75 (for 5 or fewer employees; effective July 1, 2022; until then $10/hr)|
|Nevada – w/health benefits||$9.50 (effective July 1, 2022; until then $8.75/hr)|
|Nevada – w/o health benefits||$10.50 (effective July 1, 2022; until then $9.75/hr)|
|New Jersey||$11.90 (for 5 or fewer employees)|
|New York State||$13.20 (effective December 31, 2021)|
|New York – Long Island||$15 (effective December 31, 2021)|
|Oregon||$13.50 (effective July 1, 2022; until then $12.75/hr)|
|Oregon – Portland Metro||$14.75 (effective July 1, 2022; until then $14/hr)|
|Oregon – Non-urban counties||$12.50 (effective July 1, 2022; until then $12/hr)|
|Washington – Seattle||$17.27 (or $15.75/hour if employer pays $1.52/hour toward employee’s medical benefits)|
States and cities maintaining minimum wage rates in 2022
|Illinois – Chicago||$15|
|Illinois – Cook County||$13|
|New Mexico – Santa Fe (City & County)||$12.32|
|New York – New York City||$15|
States that continue to follow federal minimum wage rate
These states either have set their state rate to the federal rate, do not have a minimum wage rate, or have a rate below the federal minimum wage. In effect, these states have a minimum wage at the federal rate of $7.25/hr:
Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming.
GTM can help
Need help understanding how to pay your nanny the right way? Besides minimum wage rates, you need to know overtime rules, domestic worker protections, paid leave laws, and more. Leave all of that to the household employment experts at GTM Payroll Services. We will pay your nanny, withhold and remit state and federal taxes, and handle all of the paperwork. Want to learn more? Call us at (800) 929-9213 for a complimentary, no-obligation consultation or schedule time with us at your convenience.
Download The Complete Guide to Household Payroll
Get our complimentary guide and learn everything you need to know about paying your employees legally and filing your taxes the right way.