Household employee overtime rules are commonly misunderstood, and often just plain ignored. The vast majority of household employees - nannies, senior caregivers, housekeepers, etc. - are classified as non-exempt (NOT exempt from overtime rules) employees. These household employees must be paid overtime. At the Federal level the rate of overtime pay is determined by whether the household employee lives with the employer or maintains their own separate residence. Live-in domestics are paid for their overtime hours at their regular hourly rate; live-out domestics are paid at 1.5 times their hourly rate for hours over 40 in the 7 day work week. Note MANY states extend the overtime differential of 1.5 times the hourly rate to live in domestics, and some states mandate daily, not weekly, overtime.
However some more skilled household employees - estate managers, head housekeeper or house managers for example - may be considered exempt or hourly employees. This classification is largely depended on the actual work performed and not on the employee's title. This is where the change is coming!