Hi, we have had the same nanny for several years. We withhold taxes and pay Social Security. Our regular schedule is more than 40 hours, and we pay time and a half for hours over 40. We never use our nanny as a babysitter as the OT rate is so high and cost prohibitive. We are about to hire a new nanny as ours is moving out of state. Is there any other arrangement where you pay a fixed weekly rate for the total hours planned like a salary vs. paying overtime for the hours above 40 every week? Ie, could we say your weekly salary is $x for up to 45 hours or something like that since the OT hours above 40 are definitely planned in advance as part of the schedule? I am not trying to get out of OT or do anything illegal. I am just wondering what other families do in the same situation? |
Not sure if there is any way around it. Nannies are covered under FLSA so need to be paid an hourly rate plus time and a half for anything over 40 hrs. If you plan to pay your nanny $47,476 or more per year, then you can exempt them from OT. That's part of the new FLSA rules taking effect on 12/1. |
You could do "guaranteed" hours, which is basically what some nannies want so they know exactly what to take home. However, you would need to calculate hourly x 40 hours a week PLUS 5 hour OT. Whatever that equals is her weekly salary. NOW, if you go to 50 hours a week on occasion, you would need to pay that OT separately. The downside, however, is if she works LESS than 45, you still pay her the same. |
This is interesting. Thank you. We do pay more than that! |
Dear ms. Cheapo. Federal law mandates that nannies are HOURLY employees and are paid OVERTIME for all time worked 40 hours. |
You still have to pay straight time. Nobody works for free. |
The new overtime rules doesn't affect nannies. The new rule is basically saying you can't have an excempt employee and pay them less than 47k. Pay your nanny OT, OP. |
Yes you can pay a fixed amount per week that you both agree upon. If for whatever reason she wants to know the rate and OT rate the equation is Week Pay= 40*R + 5*1.5*R |
Now the new FLSA exempt rules affect no one thanks to a judge in Texas. So nevermind... ![]() |
I don't understand all this bending over backward to avoid OT. If you do the above, what do you do on weeks where you need her to stay an hour late? Surely this happens, even if only rarely? If you never use ot you'll end up writing a check for the same amount anyway but why even invite the appearance of trying to skirt labor laws? Is it OCD about a weekly check not being a round number? |
I make $23/h for 1 kid and i'm guaranteed 40 hours. Any additional hour I'm paid $20/h I don't whine over "OT" |
Then you are an idiot. I write this as an MB who has no sympathy for idiot-women like you. |
I know nannies who have signed contracts with a "salary", then things ended with their employers. If things ended badly, "salary" nannies are often advised to go to the wage and labor board and force the former employers to pay them all the unpaid overtime they were (technically) cheated out of. No salary. Salary leaves an employer VERY financially exposed these days, since no nanny is truly isolated anymore thanks to the internet. (I didn't take a former employer to the WLB because they were bankrupcy level broke and stupid with money, but after 4+ years of no OT I would have been owed $75/week x 52 weeks x 4 years and 3 months. $16,575.00) Offer guaranteed hours. Write it out this way: Nanny will be paid $950 per week for up to 45 hours of work per week. Nanny's wages are broken down as follows: Regular rate of $20/hour for the first 40 hours worked plus overtime rate of $30/hour for hours 41 - 45. Hours worked over 45 in one week will be paid at the overtime rate of $30/hour, and pay will be calculated based on a quarterly hour method. Hours will be tracked by nanny using XXXXX app and submitted to employers at end of business on Fridays and paid on the following Friday. Nanny is guaranteed to be paid her minimum of $950/week as broken down above 52 weeks per year. |
Ageeed |
Yes, you are trying to get out of paying OT, by your own admission. You need to pay overtime. I don't understand the appeal of these "$X for up to Y hours" arrangements. Take your budget. Figure out Y (your required weekly hours). Do some math and figure out what rate that would equate to, both for regular pay and OT. |