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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Nannies can absolutely get paid on salary, but the salary has to be for a specified number of hours.  If the nanny works more than that specified number of hours, she must be paid OT.  If she lives out, OT pay is at one and a half times her regular hourly rate.  To determine the regular hourly rate in a salaried position, divide the weekly salary by the number of hours specified in the contract.
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That isn't a salary. That's guaranteed hours. [/quote]

Sorry, but the fact that someone is non-exempt from FLSA overtime laws does not preclude them from being paid an annual salary; it just means that the salary must be paid for an agreed-upon number of hours worked.  In fact, the term "guaranteed hours" is not commonly used outside the nanny world, except perhaps in retail and restaurant work where there are many "casual," non-professional workers.  Most corporate employers pay professional administrative workers and other non-exempt employees a fixed annual salary, and it is described as such in offer letters and other documentation.  [b]Although all these people are eligible for OT pay after 40 hours, many of them never work OT and would have no idea what their hourly rate of pay is or what "guaranteed hours" means[/b].  That's just not how most professional office workers think about compensation.

The fact that this terminology is so specific to certain industries may explain why so many new parents don't understand what the term "guaranteed hours" means to a nanny.  [/quote]

This is the difference between the nanny industry and other non-exempt workers in an office setting. Full time nannies USUALLY work more than 40 hours. When most people hear the word salary, they think a fixed yearly income paid out monthly or bi-monthly independent of the number of hours worked. The trouble parents get into, and why nannies must be specific and careful about the word "salary", is because nannies often work overtime (some up to 20 hours a week) and the exact number of hours can vary from week to week (come in an hour early, stay 2 hours late, babysit on Saturday night, etc). If the term salary has been thrown around and not defined, the parent may not feel they have to pay for extra time outside of the original hours. Hence the term guaranteed hours and the need to specify that it is different than a traditional "salary". [/quote]

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