We've asked our nanny tax people to weigh in on the subject and they said it has to be paid at overtime rates. So we don't ask the nanny to babysit at night, and use a neighborhood sitter at $15/hr. Works for us. |
And I would appreciate your flexibility, but the fact of the matter is that IRS disagrees with you that this shouldn't be charged at overtime rates. It's unfortunately not up to you (I wish it was!) This area has enough people whose record on domestic employment has to be squeaky clean, so it may be not worth it to your employer. If IRS comes after the employer with "why didn't you pay overtime?", they aren't going to care that "my nanny said we don't have to." |
"We only employed her as a nanny for 38 hours a week. She only occasionally babysit in the late evenings for 2-3 hours a month. She wasn't owed overtime. Thanks. Bye." Simple, IRS is gone. |
Ours works for more than that, unfortunately. So hiring her for extra hours would definitely get into overtime territory. I appreciate what you're trying to say but tax people say otherwise. |
Doesn't matter. Change the 38 to 50, same thing. You don't owe nanny the same pay rate for babysitting as for nannying, and you surely don't owe her overtime on that pay either, at any rate. |
You are simply wrong. There is clear law on this. You can choose to disregard it and take that risk, many certainly do. But your nanny is legally entitled to overtime rates for any hours worked for you beyond 40 in any given work week. She could be weeding the lawn for the extra hours and she is still entitled to overtime. Overtime laws are about the number of hours worked - not about the type of work. |
Wow. If that is the case, it would cost me close to $35/hour to go on a date with my husband. Guess I won't be hiring my nanny to babysit. |
Legally, you would absolutely owe overtone. However, legally you can also pay different rates for different work. If you want to be airtight legally, put in writing the rate for nanny work and the rate for babysitting work (as well as an objective distinction so it is clear what differentiates the job)
Nanny is then owed straight time at the differential rates, plus, what is known as a blended OT rate for any hours worked over 40. This is basically 1.5x the average straight pay rate she received for all hour worked per hour for hours > 40. I've never known anyone to actually do this in real life, but it's legal. |
"Nanny, we would love to have you babysit occasionally. We budget $XX/hour for babysitting. Is that rate one you would be willing to accept? If not, no hard feelings!" |
Explain that the rules for overtime would make this cost prohibitive for you. If she wants, you can recommend her to another family you know. |
"I accept that rate MB, $15/hr is fine, but please keep in mind that I will need OT since I have already worked 48 hours this week so you actually owe me $22.50/hr. See you Friday!" |
Nannydeb, I am surprised at you. You know as well as any of us that the nanny could sue for overtime after leaving employment. And she would clearly win. A household employee is a household employee. You cannot claim various hours fall under various job titles. So, if I had a nanny/housekeeper who cleaned for 30 hours and took care of kids for 20, you think I could pretend that they were two different jobs and not pay overtime? Bull. |
You will owe overtime, period if you go over 40. No way to say they are doing two different jobs for you to get around it. Explain to her that it is not in your budget to pay overtime and at such a high base rate too.
This is a good lesson for those clamoring for higher minimum wage. If you use the law to force employers to pay employees more, there are just less jobs. Employers do not have an infinite pile of money that we are just keeping from employees because of some disdain. If it is costing us $35/hr to go out, we just won't go out. If we can pay $15, we will because it is worth $15 but not $35 to go out to dinner. Simple. |
I am a MB whose HHI is a few million annually. This is not a "good lesson." If you pay people a living wage, they won't have to accept crap jobs that mean they are working 60 hours a week just to make ends meet. |
Instead of 10 people having crappy jobs, 5 will have living wage and 5 will be homeless... Okay if that's what the masses want. |