Loren Locke quoted in Investopedia about au pair wages

The federally mandated $195.75 per week stipend for au pairs has remained unchanged since 2009, which means these individuals can provide reliable in-home care at a lower cost than a nanny working a similar schedule.

“This figure is derived from the federal minimum wage of $7.25 per hour, [but] the calculation includes a [40%] deduction for room and board, which is provided by the host family,” explained Loren Locke, founder and managing attorney at Locke Immigration Law.1

Locke added that some states have set laws that mandate au pairs to be paid in accordance with local minimum wage requirements, which may be higher or lower than the federal minimum.

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Au pair arrangements are legally complex, so both parties should thoroughly understand the program terms to ensure it’s the right fit and to avoid potential legal consequences for noncompliance.

According to Locke, one common misconception amongst host families is that the au pair is a “part of the family,” so rigid rules around work hours and duties don’t apply.

“Asking an au pair to perform heavy housework, manage household errands not related to the children, or work beyond the set hours (even for additional pay) is a violation of the program rules,” Locke emphasized.11

Malloy added that misclassifying an au pair as a domestic worker or violating these hourly caps can result in a civil penalty or court hearing.

On the au pair side, Locke explained that there are two common misconceptions regarding income: that the stipend is tax-free, and that au pairs can take on side jobs like babysitting. Au pairs must file individual U.S. tax returns during their visa period through Form 1040-ES (NR) or a Form W-4 filed with their host family. Additionally, au pairs can only work for their assigned host families, since their visa is tied directly to that family.11

“Working for anyone else … can lead to [the individual’s] termination from the au pair program and even removal from the United States,” said Locke.

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Beyond financial benefit, au pairs also provide families a unique opportunity to learn from and appreciate other cultures. According to Locke, whose family has participated in the au pair program, their au pairs “[offered] a window to the broader world by introducing our children to the languages, traditions, foods, and music of their home countries.”