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Reply to "I know it's a law, but why?"
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[quote=Anonymous]I was curious to see some answers to this since so many moms on this board are lawyers. I think its safe to say that the nanny agencies have zero influence over federal employment legislation. Agencies are not numerous and they are very small businesses. Many are barely sophisticated enough to manage their own financial and legal issues let alone launch a lobby effort at the federal level. I don't know the rationale beyond the exemption but suspect that it has more to do with the fact that the compensation includes room and board not just straight hourly pay. There are other positions that are exempt from certain requirements such as service workers being exempt from minimum wage. This comes from the business model of gratuities from the customer being tied to performance as part of the compensation. [/quote]
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