Yes, that's fair and standard. Nannies are hourly employees per the FLSA and can't be salaried. So giving you a raise on your hourly rate is expected. I'm assuming they did it in hopes of offsetting the reduction of hours. If the lessening of hours means that overall annualized pay no longer is feasible for you, time to start looking for a supplemental PT job or new FT one. Best of luck!