Nanny Share Overtime

[Anonymous]

Hi we are looking into sharing a nanny with our neighbor and are trying to figure out cost. We would need a nanny for 44 hours a week where our neighbors only need care 40 hours a week. If we offer 10$ each family so combined 20$ an hour what would to overtime rate be? Would it be 30$ an hour or would it be 15$ an hour? Thanks in advanced

[Anonymous]

In the absence of a contractual one child rate, the OT rate is $30/ hour. Nanny share is a joint employment situation. So both employers are jointly responsible for the full rate, no matter how they split it in practice. You can set a one child rate, but the OT rate is then calculated on the blended rate, not the one child rate.

As an example of that, let’s say you contract your one child rate as $10/hr (for ease of math, not saying this is reasonable.) Your nanny is then paid a total weekly base rate of $840 for 44 hours or $19/hr. So, her OT is $9.50/hr for a total payment of $878 for the week.

[Anonymous]

Should your nanny make less money for the overtime hours? Seriously?

[Anonymous]

Share rate: $20, each family pays $10
One child rate: $15 (nanny may want $17-18 for one child, that’s rather common)

Nanny is paid overtime on the above rate. So, if family a only needs 40 hours that they share with family b, they pay $400. If family b needs the first shared 40, then 4 more hours, here’s the calculation:
40*share rate+1.5*overtime*one child rate=
40*$10+1.5*$15*4=
$400+$90=$490

Those 4 hours will cost about what ten would cost prior to 40, but that’s the problem with the hours that don’t match and overtime.

[Anonymous]

PP here. That’s, unfortunately, just not legally correct. You can google blended overtime if you want details. However, just conceptually, think about it. The nanny has a 44 hour per week job and gets 4 hours of OT. Why should the cheapest hours be the “extra” hours.

This law was put into place to protect employees who worked at differential rates from this very thing - losing out on OT, because the employer cherry picked which rate to calculate OT on.

With a $15/hr one child rate the nanny is owed $898.80, it’s up to the parents how to divide it up. ( and yes, it’s a tribal difference with these numbers - low OT amounts and a close rate, but that’s how it’s legally done)

[Anonymous]

Anonymous wrote:PP here. That’s, unfortunately, just not legally correct. You can google blended overtime if you want details. However, just conceptually, think about it. The nanny has a 44 hour per week job and gets 4 hours of OT. Why should the cheapest hours be the “extra” hours.

This law was put into place to protect employees who worked at differential rates from this very thing - losing out on OT, because the employer cherry picked which rate to calculate OT on.

With a $15/hr one child rate the nanny is owed $898.80, it’s up to the parents how to divide it up. ( and yes, it’s a tribal difference with these numbers - low OT amounts and a close rate, but that’s how it’s legally done)

Nanny here. I don’t know any nannies who agree to blended rates. They work out in the nanny’s favor occasionally (less than 5 hours OT), but then the parents want to use the blended rate all the time and use more than the number of hours used to calculate that rate, which means that the nanny makes less... Nope, not good.

[Anonymous]

Anonymous wrote:

Anonymous wrote:PP here. That’s, unfortunately, just not legally correct. You can google blended overtime if you want details. However, just conceptually, think about it. The nanny has a 44 hour per week job and gets 4 hours of OT. Why should the cheapest hours be the “extra” hours.

This law was put into place to protect employees who worked at differential rates from this very thing - losing out on OT, because the employer cherry picked which rate to calculate OT on.

With a $15/hr one child rate the nanny is owed $898.80, it’s up to the parents how to divide it up. ( and yes, it’s a tribal difference with these numbers - low OT amounts and a close rate, but that’s how it’s legally done)

Nanny here. I don’t know any nannies who agree to blended rates. They work out in the nanny’s favor occasionally (less than 5 hours OT), but then the parents want to use the blended rate all the time and use more than the number of hours used to calculate that rate, which means that the nanny makes less... Nope, not good.

I’m not sure what there is to agree or disagree with... that’s jusft OT is legally calculated with differential rates. Maybe you meant babies would agree to differential rates... and I kind of agree with that. It hardly seems worth the trouble, likely misunderstandings, and potential for upset just to save a few bucks. Set an hourly rate, guarantee with overtime, done. IMO. But, if you do agree on a differential rate, blending it for OT calculation is proper.

[Anonymous]

Sorry. Totally phone flubbed a lot of words! Hopefully my point got across

[Anonymous]

If she only has one child for the OT hours, then it would make sense that the overtime were less money than the two-child rate. She can do the overtime or not do the overtime, it's her choice.

[Anonymous]

I don't do nanny shares it's too confusing and can become a problem between the two families. Nope never

[Anonymous]

I have done three nanny share so far, anything after 40 is overtime. So you should be paying her $30.