Minimum wage rising and nannies wages RSS feed

Anonymous
Just read an article that minimum wage is going up in the district and Montgomery county where it is to reach $12.50. When the minimum wage was $7.25 and an average nanny makes $15 that would mean nannies make about twice the minimum. With this recent increase it looks that nannies will be almost at the minimum. Do you all think this means nannies wages will/should increase? I know wages depend on the supply side and families' ability to pay. But, if all of a sudden all a nanny is making is a minimum why stay in this profession?
Anonymous
Imo, it depends on what nannies and employers negotiate. Certainly nannies should at minimum be paid no less than minimum wage, but anything after is up for negotiations.
Anonymous
I doubt it. Nannies don't work for companies where laws are enforced. An individual can pay whatever they want
Anonymous
It all depends on what you mean by "nanny", a HS graduate trying to "find" herself, or a 25 year veteran with amazing skills. Obviously, the 19 year old is more likely to accept minimum wage, whereas the accomplished professional earns at least double, or even triple that.
Anonymous
If eventually the nannies making minimum wage, or near minimum wage must be paid 12.50, I think it will either drive up rates some, or those nannies won't be able to compete for nanny jobs, or we'll see more jobs go under the table, which is unfortunate.
Anonymous
Anonymous wrote:I doubt it. Nannies don't work for companies where laws are enforced. An individual can pay whatever they want


You're an idiot if you think those laws can't be enforced. That's what a little thing called the labor department, and the wage and hour enforcement board are for. An individual can pay whatever they want, but you won't see that so much in this area where people won't be willing to risk their clearances and they're reputation.
Anonymous
Anonymous wrote:If eventually the nannies making minimum wage, or near minimum wage must be paid 12.50, I think it will either drive up rates some, or those nannies won't be able to compete for nanny jobs, or we'll see more jobs go under the table, which is unfortunate.

I agree that 11:23 is a total idiot.
Anonymous
A tiny step in the right direction but $15.00/hr should be the minimum for all hourly employees.
Anonymous
If eventually the nannies making minimum wage, or near minimum wage must be paid 12.50, I think it will either drive up rates some, or those nannies won't be able to compete for nanny jobs, or we'll see more jobs go under the table, which is unfortunate.


I agree with this.
Anonymous
Anonymous wrote:A tiny step in the right direction but $15.00/hr should be the minimum for all hourly employees.


+1
Anonymous
This is interesting. I think the issue is that nannies are employed by families, who presumably only have a certain amount to spend on childcare. Whereas Costco or Walmart or some other large employee can absorb another few dollars an hour up to a point, there is absolutely an upper limit on what families can pay and also, a number of other options for childcare (grandparents, daycare, au pairs, quitting job themselves). So as nannies get more expensive, more people will not employee them, either because they can't or because they go to cheaper options.

At $15/hour for a standard 45-hour week, that's $760/week or $39,523 a year with taxes. It's relatively rare families who can afford even that. If you put two kids in daycare full-time even at a costly place that's $1,500 a year, that only puts you to $37,000. So for a couple thousand a year extra, many families are happy to employee a nanny for the convenience of not having to do drop-off/pick-up and for their children to have one-on-one care.

If you're paying a nanny $20/hour, that's $1,014 a week or $52,734 a year. So you really have to want a nanny over daycare if you're going to be willing to spend an extra $20,000 for the year.

I'm not saying nannies aren't worth more money at all. I'm just saying that there's an upward limit on what nanny employers are going to be willing and able to pay.
Anonymous
Sorry, I guess it's about $15,000 more for a $20/hour nanny over two kids in $1,500 daycare - my point remains the same.

And our kids were in a wonderful daycare in Silver Spring that was $1,150 a month.
Anonymous
15:27, you think $39,523 is a lot of money to take care of children 8-10 hrs/day? Do not have kids if you cannot afford to care for them.
Anonymous
Anonymous wrote:15:27, you think $39,523 is a lot of money to take care of children 8-10 hrs/day? Do not have kids if you cannot afford to care for them.


+1000
Anonymous
Because nannies, atleast most, go into the nanny profession because it's easy and doesn't require an education so that's why they will stay in the profession regardless cause where else will they go? RETAILLL!
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