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Reply to "Flex schedule and overtime pay question"
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[quote=Anonymous]You can do this without violating overtime laws, but the nanny has to be willing to shift her compensation request from an hourly rate to a weekly rate that is tied to a fixed number of hours. Let's say the nanny will work 40 hours in each week A and 50 hours in each week B. She wants to be paid $1000 per week, every week, whether she works 40 hours or 50 hours. You need to give her a contract that says she is guaranteed $1000 per week for a 50 hour work week, calculated at a base hourly rate of $18.19 for the first 40 hours and an overtime rate of $27.28 for the final ten hours. The key to keeping it legal is that you have to explicitly guarantee that she will be paid for 50 hours at the stated hourly rates every week, even if she works less than 50 hours. So, in every week A, she effectively gets ten hours of overtime pay even though she only works 40 hours. Perfectly legal. There are calculators online, including at gtm.com, that you can use to backout a base and OT rate from whatever weekly pay and maximum number of hours you want to offer. If for some reason you go over 50 hours in a week, you do have to pay for those hours at the OT rate of $27.28. [/quote]
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