Reply to Nanny Schedule/Overtime Hourly vs. Weekly Rates - Input Needed for New Nanny/Contract

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[quote=Anonymous][quote=Anonymous]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?[/quote]

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.[/quote]

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