Many families (and agencies) use nanny work agreements that cover a specific period of time, generally one year. This is NOT a good idea. In a complicated United States District Court, D. Oregon case, the court affirmed that nannies are indeed non-exempt employees and are entitled to hourly pay and overtime pay for hours worked in excess of 40 in a work week.
It involved:
- Wrongful Discharge
- Breach of Employment Contract
- Unpaid Wages
- Unpaid Overtime
The court further affirmed that a work agreement that was expressly for a 24 month period of time (rather than "at will") was enforceable. The employer was required by the court to pay the discharged employee through the work agreement termination date.
If you employ or are considering employing any household employee, please take the time to read the court's decision. This is a text book case of what an employer should not do in nanny or household employment.
HomeWork Solutions' online FAQ provided detailed discussion of many of the FLSA issues addressed in this case, including the applicability of overtime in household employment. Our free sample nanny work agreement templates specifically addresses "at will" employment. We also have a free tip sheet, How to Craft the Nanny Work Agreement, available for download.
Do you have questions? Legally Nanny's Bob King is a noted industry expert. He assists families seeking professional assistance with a household worker's employment agreement, severance agreement, or any other legal matter pertaining to household employment. We refer clients with legal questions to Bob confident that he fully understands the household employment industry.
Added Bonus!
When you download HWS' valuable tip sheet on writing the nanny work agreement, you will also be provided links to HWS' nanny work agreement template and Pay Rate Notice, a document you are required to provide your household employee in many states.