Changes to Minimum Wage Laws for NYC Nannies and Housekeepers

If you've ridden on the subway in recent weeks, you will have noticed numerous ads for the new raise in minimum wage here in NYC. As of December 31st, 2018, New York City employees will see the third raise in minimum wage since 2016. This newest increase is part of a law signed into action by Governor Cuomo, which promised a new minimum wage of $15/hour for all New York State employees by the end of 2019. This new minimum, however, is being enacted gradually and differentially - based on the employer's size and location. We'll break it down to what the new minimum wage in NYC might mean for you, the nannies of New York City!

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​The Details of Change for NYC Nannies 

If you work as a nanny here in NYC, chances are you are the sole employee for your nanny family, or one of a handful of domestic staff. The new minimum wage in NYC for employers with 10 or fewer employees is $13.50/hour. This rate will increase to $15/hr at the end of 2019. But, for now, if you are employed among less than 10 others you can expect to be making at minimum $13.50 an hour. If you are employed among more than 10 other employees, the new minimum wage is $15/hour. 

What Does This Mean for NYC Nannies and Housekeepers?

A nanny or other household worker must be paid the minimum wage for every hour they work. If the state-enacted minimum wage is higher than the federal minimum wage, the state-law must be followed. Live-out nannies are entitled to an overtime rate for any hours worked over 40 hours/week; live-in nannies' overtime rates begin after 44.

At the new minimum rate of $13.50 an hour for NYC employees - a full-time nanny working 40 hours/ week can expect to make $540/week. But as we know, most nannies work more than that. For a nanny working 7am-7pm, 60 hours a week, their minimum wage is now $945/week. Starting December 31, 2019, 60 hours will be a minimum of $1,050.

Will Nannies Take a Minimum Wage?

     It depends.  While the new minimum wage for NYC employees is a commendable move in the right direction for workers' rights nationwide, the fact of the matter is that it is darn near impossible to survive here on $540/week, pre-tax, even with over time in place.
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    Qualified nanny professionals with experience, extra trainings, and credentials are often considering going the agency route when searching for new employment at a live-able salary, as referrals are often not at the level of professionalism they need, and the reputation of online sitter-services is poor, with the assertion from many being that these sites have normalized low hourly-rates, due to the amount of entry-level nannies using these services.
   If you're an inexperienced sitter looking to break into the field and pick up some babysitting on the side, online sitter-services are often the route for you until you become more qualified. However, if you are a professional nanny, looking for a full-time role, then you do not need to compete with entry-level caretakers for cash-positions. 

If you've been working as a nanny for at least two straight years, then you are no longer an entry-level employee. If you are CPR Certified, have education coursework, a background in teaching, experience with newborns, or any other marketable childcare assets, then you are well above minimum wage, in the $18-20/hr range.
     Working with an agency ensures that your particular skillset and credentials will be highlighted to any potential employers. It also ensures that, at least through KITH & KIN, the families you're meeting will already have a standard of respect for their future employee, know their obligations on a living and viable "gross-pay" wage, guaranteed hours, sick and vacation time, and know from our first conversation that entry-level employees will not make it through our extensive nanny-vetting process. They also understand that they must be willing to give their nanny a certain standard of professional respect. 

What if I Can't Afford to Pay a Nanny More than the New Minimum Wage in NYC?

    We empathize with families facing this question, and the lack of access to affordable, quality childcare in New York City.  Families trying to juggle their careers and care for their children are feeling this pinch the most. If this change is hindering your ability to afford private childcare from an experienced nanny, eventually, a shift will have to occur in order for your family to secure the care you desire.

For your job,  either the job and experience expectations will need to decrease, or the childcare budget will have to rise. Unable to do one of those two things, some families have looked into nanny-shares, live-in au-pairs whom are younger and less experienced, or whole-group childcare centers. While each of those three options are not as convenient as an experienced career nanny, over the past few years without this rise, it has become, and will continue to become, harder to find qualified nannies whom are able to be vetted fully and still pay $15/hr. 
      We know first-hand the cost of living and childcare here in NYC is extremely high. This is the reason why so many families weigh their careers and relocation out of the city. It is a tough conversation to have! ​

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If you are a family interested in hiring a nanny in NYC and the greater metro area, and are confused about rates and taxes, get in touch with us here.  If you are a nanny with questions about your wages, we may be able to steer you to the right resource, so please get in touch here.

Have any additions questions about the new minimum wage in NYC? Ask us in the comments below!

- KITH & KIN