Anonymous wrote:We needed 50 hours of child care. When we were interviewing nanny's we always stated that we needed a minimum of 40 hours (Mon. - Thu) at $15/hr and that we had a part-time sitter in who could pick up the extra 10 hrs on Friday. We simply don't have the money to pay time and a half for the extra ten hours. We gave the option though for the full-time nanny to pick up those extra 10 hours at an "average" of $15/hr for the week. Every one of the 7 nanny's we interviewed wanted the extra 10 hours even though we weren't technically paying time and a half. When we wrote up the final contract we made it legal - $750 for a maximum of 50hrs per week.
Anonymous wrote:Very common to set total weekly wage for fixed number of hours. Work backward from that to regular wage and OT wage. Specify these in contract and/or payroll service (or excel spreadsheet used to calculate pay, whatever). Extra OT hours paid at OT rate. Nothing illegal about this.
Anonymous wrote:Work on that reading comprehension, 19:40.
Anonymous wrote:It's actually not that simple, OP.
In DC at least, it is very common for families that guarantee hours to pay a flat weekly sum in exchange for the guaranteed hours. It is just as common in these scenarios to negotiate that weekly sum in terms of average hourly rates. For example, the family might guarantee 50 hours and pay $750, for a average hourly rate of $15. The hours under 40 and the hours over 40 are all paid at the same average hourly rate. However, no one is cheating because there is an implicit base and time-and-a-half overtime rate.
For example, $750 per week for 50 hours = $15 average hourly rate. However, the true rate for the first 40 hours is $13.64 and the true rate for the last 10 hours is $20.46. It is best for the family to specify this breakdown in the work agreement, but not strictly necessary as long as the contract states the weekly pay, the total hours, and the fact that $15 is an average hourly rate (rather than a base hourly rate).
Anonymous wrote:They just don't want their nannies to know they are paying them $12/hour to watch 2 kids and clean house, only because they also work her 50 hours a week. Its ridiculous. Nannies should negotiate a rate appropriate for the job (base rate) and the required OT. Don't fall for this average rate crap, its just a big ass discount to them for working you extra hours. That the opposite of what OT should be. OT should be expensive. You should make SIGNIFICANTLY more for working 50 hours than you would 40 hours.
Anonymous wrote:Anonymous wrote:Anonymous wrote:I think PP is wrong about it being ok for the base / OT amts to be implicate instead of explicate in the contract.
You can negotiate based on avg rates against a fixed amt of guaranteed hrs each week. But the contract needs to spell out the base rate. And yes one reason this is so important is so that if a family needs an extra 2 hours one week, they need to pay at the contract's specified OT rate, not the avg rate.
You're right, she is unequivocally WRONG and her advice could get someone in trouble. Since there is no actual government recognized thing as an average hourly rate, unless you specify the actual base and OT rates in the contract, the rightful assumption will be that you were paying your nanny at $15/hour and failed to pay the OT. Personally, I always negotiate a normal hourly rate as my base and expect a true OT rate of 1.5 times my otherwise appropriate base rate. 50 hours is going to cost you, and in my opinion, it should. That being said, if you're going to take the "average" rate approach, specify the true rates to cover your ass.
Families should absolutely protect themselves by spelling out the implicit base rate and OT rate. That is the lowest-risk course of action for employers. However, if they fail to do so, they are not automatically in violation of the law. A court or administrative body would look at the entire work agreement and other relevant facts to determine whether there was an implicit base rate for hours 0 through 40 and an implicit OT rate for hours over 40. It does not matter that there is no "government-recognized thing" as an average hourly rate. The meaning of that term can be ascertained from the dictionary, from local custom, and most importantly from other provisions in the agreement, such as a clause stating that hours beyond the guaranteed 50 get paid at the time and a half rate of $20.46 per hour as opposed to either $15 or $22.50.
Anonymous wrote:Anonymous wrote:I think PP is wrong about it being ok for the base / OT amts to be implicate instead of explicate in the contract.
You can negotiate based on avg rates against a fixed amt of guaranteed hrs each week. But the contract needs to spell out the base rate. And yes one reason this is so important is so that if a family needs an extra 2 hours one week, they need to pay at the contract's specified OT rate, not the avg rate.
You're right, she is unequivocally WRONG and her advice could get someone in trouble. Since there is no actual government recognized thing as an average hourly rate, unless you specify the actual base and OT rates in the contract, the rightful assumption will be that you were paying your nanny at $15/hour and failed to pay the OT. Personally, I always negotiate a normal hourly rate as my base and expect a true OT rate of 1.5 times my otherwise appropriate base rate. 50 hours is going to cost you, and in my opinion, it should. That being said, if you're going to take the "average" rate approach, specify the true rates to cover your ass.