Amy Jarjusey

Federal Minimum Wage Increase

As you know, the au pair weekly stipend amount is determined by a calculation based on the federal minimum wage. This amount is subject to change based on any changes to the federal rate. In recent news media coverage, you may have heard about proposed legislation to increase this amount over a two-year time period. While this has been a topic of discussion for several months, yesterday, Congress approved the first increase in the federal minimum wage in nearly a decade. President Bush had signed this bill and this will have a direct impact on the au pair weekly stipend 60 calendar days after this presidential approval.

The exact calculation used to determine the weekly stipend is as follows:

Minimum wage x 45 hours 40% (room and board allowance) = stipend amount

As the changes to the minimum wage will change the au pair stipend in three increments, the following schedule will apply:

• 60 Days = Tuesday, July 24th, 2007 → from $139.05 to $157.95/week
• 12 Months = Sunday, May 25th, 2008 → from $157.95 to $176.85/week
• 24 months = Monday, May 25, 2009 → from $176.85 to $195.75/week

In order to remain compliant with program regulations, all program participants must pay their au pair based on the new stipend rate effective the week of Tuesday, July 24th (subject to change based on date of presidential signature).

All Cultural Care Au Pair literature, including the host family agreement, stipulates that host families will comply with all regulations, therefore, refusal to comply with these changes will result in a host familys termination from the program.

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