Minimum Wage Rates Set to Increase this Summer Across U.S.

Jun 24, 2021 | Hiring an Employee, Household Payroll & Taxes, Tax & Wage Laws

Summer is a popular time for minimum wage rate increases that apply to nannies and other household employees. It’s important to check the rate you’re paying a household worker to make sure it is not a wage violation. The minimum wage is on the rise in several states and cities across the country.

Ahh, summer. Beach vacations. Cookouts with family and friends. And minimum wage rate increases for nannies and other household employees.

Yes, it’s that time of year to check the rate you are paying your household worker to make sure it is not a wage violation. Rates are on the rise in several states and cities across the country.

Why the minimum wage rate is important to household employers

The federal Fair Labor Standards Act states that nannies and other household employees need to be paid hourly (not a salary) and at least the prevailing minimum wage rate. While the federal rate has remained unchanged at $7.25/hour for several years, many states, counties, and cities have increased their rates above the federal level. The highest applicable minimum wage applies.

For example, if you employ a nanny in Los Angeles, the local minimum wage of $15/hour (as of July 1, 2021) applies because it is higher than the state ($13/hour) and federal rates.

States and cities also have annual, built-in increases that boost their minimum wage rates so it is important to understand when and by how much these rates will climb.

Get a complete listing of all state, county, and local minimum wage rates for nannies and other household employees.

Minimum wage increases on July 1, 2021

Chicago

Increases to $14/hour

Freemont, California

Increases to $15/hour for small employers

Los Angeles (city and county)

Increases to $15/hour for small employers

Malibu, California

Increases to $15/hour

Minneapolis

For employers with 100 or fewer employees, increases to $12.50/hour

Montgomery County, Maryland

For employers with 10 or fewer employees, increases to $13.50/hour

Nevada

Increases to $9.75/hour (without employee health benefits) and $8.75/hour (with qualified employee health benefits)

Oregon

Portland: Increases to $14/hour

Standard: Increases to $12.75/hour

Non-urban counties: Increases to $12/hour

To determine which rate applies to your county, visit Oregon Minimum Wage Rate Summary.

Pasadena, California

Increases to $15/hour for small employers

St. Paul, Minnesota

For employers with 5 or fewer employees, increases to $10/hour

Santa Monica, California

Increases to $15/hour for small employers

Vermont

Increases to $11.75/hour

Washington, D.C.

Increases to $15.20/hour

Minimum wage increases on August 1, 2021

Connecticut

Increases to $13/hour

Minimum wage increase on May 1, 2021

Virginia got a head start in the summer minimum wage increases by boosting the state rate to $9.50/hour on May 1. It had been the same as the federal rate.

GTM can help

Have questions about paying your nanny? Get help from a household employment expert who will answer your questions about employing someone to work in your home. The consultation is free and there is no obligation. Just call (800) 929-9213 or schedule time with us at your convenience.