Anonymous wrote:

Anonymous wrote:

Anonymous wrote: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.

That isn't a salary. That's guaranteed hours.

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. 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. 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.

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".

Anonymous wrote:

Anonymous wrote: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.

That isn't a salary. That's guaranteed hours.

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. 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. 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.

A salary means you are paid the same, regardless of how many hours you work, MORE or LESS. A nanny is legally an hourly employee, and must be paid for each hour worked, and therefore cannot be paid a true salary. It is a very common benefit to have guaranteed hours, meaning you are paid for a set number of hours but may work less. However if you work more than your guarantee, you are legally entitled to be paid for it.

Anonymous wrote: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.

That isn't a salary. That's guaranteed hours.

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.

IRS Form 926 doesn't actually answer the question about hourly vs. salary. These links do.

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/exempt-nonexempt-employment/

http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/overtime-calculation/

http://www.4nannies.com/nanny-wages/

http://www.nannynetwork.com/Library/faq/nanny-salary-wages.cfm

nannydebsays wrote:Nannies CANNOT be salaried.

Nannies CAN have guaranteed hours written into their contracts.

Parents SHOULD make sure they have a clause in the contract that states nanny's hourly rate, her OT rate (if needed for jobs over 40 hours or jobs when extra hours will be worked occasionally), and her weekly rate of pay, specifying if that is guaranteed or not.

I agree that nannies can't be salaried, but if people want to verify that, where should they find it?

Nannies CANNOT be salaried.

Nannies CAN have guaranteed hours written into their contracts.

Parents SHOULD make sure they have a clause in the contract that states nanny's hourly rate, her OT rate (if needed for jobs over 40 hours or jobs when extra hours will be worked occasionally), and her weekly rate of pay, specifying if that is guaranteed or not.

Echo the PP - it sounds like you have guaranteed hours and the parents don't use all of them. That is my situation also - I get paid for 35 hours per week but rarely work all of them and sometimes work less than 30.

No. Legally, you are supposed to be an hourly employee.
I suspect what you actually have is guaranteed hours, OP.

Most nannies charge by the hour.

Just curious if majority of nannies make a salary or hourly wage? I am
On a salary and get paid assuming I work 45 hours a week (I never go over 40) And was just wondering if this was the norm or not?

Thanks!