Can Someone Explain What a Blended Rate Means? Who does it Benefit?

[Anonymous]

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you're only going to take $20/hr and $30/hr overtime, than any rate that adds up to less than $1100/wk will be a no-go for you. But that's just the total.

They could express that $1100 as the technical $20/hr base rate + $30/hr OT, or as a blended rate of $22/hr across the board. Both equal $1100 for 50 hours.

My guess is, however, that they do not want to pay $30/hr OT, so they are going to offer you $1000/wk which breaks down as above. If you are willing to take that rate, then any hours beyond the 50 would also be paid at the "blended" OT rate of $27.05/hr.

In this case it would not benefit you unless you want the job and are willing to take a lower rate. In general, though, a blended rate just expresses the amount differently to come up with a mutually-agreed-upon weekly total.

OK thank you. I guess it's better if I figure out a weekly rate that I can live with as opposed to focusing on the hourly rate. I do intend to clarify with the family but thought it might not be a bad idea to do a little research on my own as their way of explaining it to me might possibly be biased. BTW PP, are you a nanny or a nanny employer?

I am an employer. I have never used a blended rate, since it seems just as easy to me to say that I'm offering $18/hr, $27 for OT, and will guarantee 42.5 hours/wk., which is what my nanny works. I have good math skills, though, so both presentations seem equally clear to me. Some people really want to work with round numbers ( $1000/wk), or have to work backwards from a budgeted weekly amount, and so the blended rate does that legally, as long as any additional overtime is paid at the actual OT rate.

What kind of worker says to an employer,
"I really need to work with "round" numbers" when discussing pay?

I can't imagine hiring such a person to be responsible for my child.

Silence.

[Anonymous]

And what happens when the kids go to school and the nanny's hours are less than 50/week? Make sure you get guaranteed hours for 40hrs a week at $20/hr instead of $18/hr. I don't like this blended rate crap, only benefits the employer!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

So again can someone explain to me how this benefits the potential employee?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

So again can someone explain to me how this benefits the potential employee?

No one will answer how this benefits an employee, because it doesn't. It's an illegal scam being promoted by bad agencies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

So again can someone explain to me how this benefits the potential employee?

No one will answer how this benefits an employee, because it doesn't. It's an illegal scam being promoted by bad agencies.

It is illegal to offer $18 when the nanny asked for $20? You sound like an idiot.

[Anonymous]

Anonymous wrote:And what happens when the kids go to school and the nanny's hours are less than 50/week? Make sure you get guaranteed hours for 40hrs a week at $20/hr instead of $18/hr. I don't like this blended rate crap, only benefits the employer!

In your example it benefits the nanny. If her normal rate is $20 and OT is $30, when her hours drop she only ever makes $20. But with a blended rate, when her hours drop below 40 and she is not eligible for OT anymore she still makes the $22/hr blended rate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

So again can someone explain to me how this benefits the potential employee?

No one will answer how this benefits an employee, because it doesn't. It's an illegal scam being promoted by bad agencies.

It is illegal to offer $18 when the nanny asked for $20? You sound like an idiot.

You still didn't answer the question.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm not great at math but it does sound like the employer is trying to reduce the potential employee's hourly wage request in order to avoid paying higher overtime fees. Whether or not the potential employee agrees to it doesn't really change that.

This is 100% correct.

So again can someone explain to me how this benefits the potential employee?

No one will answer how this benefits an employee, because it doesn't. It's an illegal scam being promoted by bad agencies.

It is illegal to offer $18 when the nanny asked for $20? You sound like an idiot.

You still didn't answer the question.

The post above answers it.

If the hours go above normal for the week then yes, it's illegal.

[Anonymous]

This thread is about OT hours (50/wk), 8:16, so of course these parents are breaking the law.

[Anonymous]

The only way a blended rate benefits a nanny is if she enters a job knowing her hours will drop in the next 3 - 6 months. Then agreeing to 1000/week and a "blended rate" of $20/hour for 50 hours is better than insisting on ($18 X 40) + ($27 X 10), as long as the employers stick with the $20/hour when they cut her overtime hours in 3 months.

IOW, .1% of the time a blended rate might benefit nanny. The other 99.9% of the time it is a cheat tactic.

Oh, wait. If a nanny gets fired and had a blended rate contract she might be able to collect unpaid OT through the wage and labor board when she leaves the job. Does that count as a benefit?

[Anonymous]

Anonymous wrote:The only way a blended rate benefits a nanny is if she enters a job knowing her hours will drop in the next 3 - 6 months. Then agreeing to 1000/week and a "blended rate" of $20/hour for 50 hours is better than insisting on ($18 X 40) + ($27 X 10), as long as the employers stick with the $20/hour when they cut her overtime hours in 3 months.

IOW, .1% of the time a blended rate might benefit nanny. The other 99.9% of the time it is a cheat tactic.

Oh, wait. If a nanny gets fired and had a blended rate contract she might be able to collect unpaid OT through the wage and labor board when she leaves the job. Does that count as a benefit?

If the base rate and ot rate are spelled out in the contract, it's not illegal. It is less than the nanny asked for, but it's a legal counteroffer, which she is allowed to turn down.

[Anonymous]

It seems like a great way to eliminate nannies who have trouble with basic math.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The only way a blended rate benefits a nanny is if she enters a job knowing her hours will drop in the next 3 - 6 months. Then agreeing to 1000/week and a "blended rate" of $20/hour for 50 hours is better than insisting on ($18 X 40) + ($27 X 10), as long as the employers stick with the $20/hour when they cut her overtime hours in 3 months.

IOW, .1% of the time a blended rate might benefit nanny. The other 99.9% of the time it is a cheat tactic.

Oh, wait. If a nanny gets fired and had a blended rate contract she might be able to collect unpaid OT through the wage and labor board when she leaves the job. Does that count as a benefit?

If the base rate and ot rate are spelled out in the contract, it's not illegal. It is less than the nanny asked for, but it's a legal counteroffer, which she is allowed to turn down.

Most employers don't actually know to spell that out, or they never get a contract signed by a nanny. They leave themselves utterly vulnerable to W&LB complaints.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The only way a blended rate benefits a nanny is if she enters a job knowing her hours will drop in the next 3 - 6 months. Then agreeing to 1000/week and a "blended rate" of $20/hour for 50 hours is better than insisting on ($18 X 40) + ($27 X 10), as long as the employers stick with the $20/hour when they cut her overtime hours in 3 months.

IOW, .1% of the time a blended rate might benefit nanny. The other 99.9% of the time it is a cheat tactic.

Oh, wait. If a nanny gets fired and had a blended rate contract she might be able to collect unpaid OT through the wage and labor board when she leaves the job. Does that count as a benefit?

If the base rate and ot rate are spelled out in the contract, it's not illegal. It is less than the nanny asked for, but it's a legal counteroffer, which she is allowed to turn down.

Most employers don't actually know to spell that out, or they never get a contract signed by a nanny. They leave themselves utterly vulnerable to W&LB complaints.

Therefore, best to keep it simple just like all other employers of hourly employees. Why not??