My wife did nannying for a few years -- she wouldn't even apply for any position less than $16/hour. You can get away with minimum wage but you'll likely get what you pay for.
It's also very helpful to treat them like a real employee -- set schedule, tax set-up, pay stubs, etc. The ones that were the most frustrating and she quit on fairly quickly were the people who didn't respect her time or treat it like a real job -- being very late getting home from work without notice, adding or cancelling days last minute, that kind of thing.
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