This is important information that was sent out to all host families and au pairs regarding an increase in the minimum wage.
Dear Host Family & Au Pair
As a participant in the Cultural Care Au Pair program, it is our obligation to update you with the necessary information for your continued compliance with the U.S. Department of State regulations. What follows is an important review of changes regarding the au pair weekly stipend. 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, on Thursday, May 24th, Congress approved the first increase in the federal minimum wage in nearly a decade. President Bush signed this bill on May 25th and this will have a direct impact on the au pair weekly stipend 60 calendar days after presidential approval.
The federal minimum wage will increase by $2.10 over the next two years and this will take effect incrementally at 60 days, 12 months, and 24 months after approval.
The calculation used to determine the au pair stipend amount is a combination of the federal minimum wage as well as a room and board allowance. The exact calculation used to determine the weekly stipend is as follows:
Minimum wage amount x 45 hours – 40% (room and board allowance) = new stipend amount
As the changes to the minimum wage will change the au pair stipend in three increments, we wanted to provide you with an overview of the changes over the next two years.
60 Days = Tuesday, July 24th, 2007 — increase from $139.05 to $157.95/week
12 Months = Thursday, July 24th, 2008 — increase from $157.95 to $176.85/week
24 months = Friday, July 24th, 2009 — increase from $176.85 to $195.75/week
In order to remain compliant with program regulations, all host family participants must pay their au pair based on the new stipend rate effective the week of Tuesday, July 24th . We will provide you with reminders as the dates marking the increases approach. All Cultural Care Au Pair literature and agreements stipulate that host families comply with all regulations and, therefore, adherence to these changes is required of all program participants.
Should you have any specific questions regarding these changes, please do not hesitate to contact our office directly at 1-800-333-6056.
Vice President of Customer Service & Compliance
Cultural Care Au Pair