Overtime in nanny share

[Anonymous]

Setting up a nanny share and trying to figure out overtime.

If one family goes over 40 hours in a week, do they pay overtime (1.5x the hourly rate) for their share or for the full hourly amount?

So if the hourly rate were $24, and my half is $12/hr, do I pay OT as $18/hr or do I pay $36?

Thanks!

[Anonymous]

You ask her what her rate is for one child and then pay her 1.5 times that rate.

[Anonymous]

Anonymous wrote:You ask her what her rate is for one child and then pay her 1.5 times that rate.

+1

[Anonymous]

Legally, it’s what’s called a blended overtime rate. The idea being, you have to pay 1.5x for the extra hours but you can’t select the cheapest hours and call those the “extra.” What you do is find the average hourly rate for the week (the total amount you pay adding up the one child and two child hours divided by the total number of hours worked). 50% of that is the blended overtime differential that you have to pay on top of the week’s salary for every overtime hour worked.

Note you need a contractual one child rate to do this. Without a contractual one child rate, you do owe OT on the two child rate.

[Anonymous]

Her rate is $24 not $12, so you would pay $36 for all OT hours.

[Anonymous]

$36

[Anonymous]

Why do people try to be cheap and get over blending rates?!?! Pay 36$ in overtime or you'll find yourself constantly going through nannies

[Anonymous]

A couple different scenarios:

Both families need the same 45 hours. Nanny gets $12/hour for the first 40 from each family, then $18/hour for the other 5.

Both families need 45 hours. One family needs an hour earlier each day, while the other family needs an hour later. Both families agreed in the contract to share rate of $24/hour, single family $22/hour. Both families pay $12/hour for the first 40, then $33/hour for their 5 hours alone (22*1.5).

(In the contract, not just a drop in hours) Family a needs 35 hours, family b needs 45 hours. Share rate is $24, single family rate is $22. Family a pays $12/hour for 35 hours. Family b pays $12/hour for 35 hours, $22/hour for 5 hours, $33 for 5 hours.

[Anonymous]

Anonymous wrote:Setting up a nanny share and trying to figure out overtime.

If one family goes over 40 hours in a week, do they pay overtime (1.5x the hourly rate) for their share or for the full hourly amount?

So if the hourly rate were $24, and my half is $12/hr, do I pay OT as $18/hr or do I pay $36?

Thanks!

Did you set a one child rate? If not, you pay overtime on the (full) normal rate.

[Anonymous]

Again, even with a contracted one child rate, you can’t just pick that rate for the OT. It doesn’t work that way. You need to calculate the blended rate. Honestly, unless there is a large amount of one child time, you might was well pay OT on the two child rate. The blended rate will be pretty close to the two child rate.