Do I Need to Pay My Nanny Overtime and Minimum Wage?

Household employees like nannies, in-home senior caregivers, and housekeepers fall under the Fair Labor Standards Act. That means household employees must be paid at least the federal minimum wage and could be subject to overtime regulations.

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Household employees like nannies, in-home senior caregivers, and housekeepers fall under the Fair Labor Standards Act.

That means household employees must be paid at least the federal minimum wage.

Your state’s or city’s minimum wage may be higher than the federal rate.

You must pay the highest minimum wage of federal, state or local.

As for overtime, household employees must be paid time and a half for hours worked over 40 in a week.

Federal law exempts live-in employees from OT requirements. However, there are some exceptions.

For live-in employees, up to 8 hours of sleep time can be unpaid, if the employer provides adequate sleeping facilities, allows for at least 5 hours of continuous sleep, and has a written agreement with their employee. Again, there are exceptions. California, for example, does not allow sleep time to be unpaid.

Domestic employees also must be hourly employees. You can’t pay a nanny a salary.

Do you have better uses of your time than to monitor and react to changes in tax, wage, and labor laws?

Don’t want to take on all of the responsibilities of having an employee?

GTM relieves the risks, hassles, and worries of nanny taxes and payroll for thousands of families likes yours.

Call GTM at (800) 929-9213 and get a free, no-obligation consultation with a household employment expert.

We’ll be happy to help!

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