The short answer is yes. Domestic employees, such as nannies, household assistants, and elder care providers are hourly employees under the law, and therefore must be paid overtime. The Fair Labor Standards Act (FLSA) provides the framework to determine weekly overtime requirements for household workers. Some states also have laws requiring daily overtime. It is important to understand all applicable rules to determine when overtime pay is due.

Topics: eldercare, caregiver payroll, nanny agency, senior care, nanny employment practices, nanny, nanny tax, nanny overtime, household payroll, Senior Caregiver Payroll, agency, senior, CPA

Are you considering hiring a nanny? Maybe a senior caregiver for one of your aging parents? Finding and hiring an experienced household employee helps provide the extra hand you need. But don’t forget, you’ll need to factor in the cost of hiring someone to work in your home. Paying them ‘under the table’ is illegal. Here are some essential things to remember when paying your employee fair and legally.

Topics: nanny unemployment insurance, hiring a nanny, nanny overtime, nanny paid time off, nanny mileage reimbursement, nanny tax compliance, caregiver, nanny vacation, agency

We get many questions surrounding overtime for domestic employees. Most of the time, household employees work 40 hours a week or less. However, when your employee works extra hours, you will need to be prepared to pay for overtime. Not sure how to accurately calculate the overtime for these longer shifts? We can help.  

It might seem easier to agree to pay your employee a weekly salary to avoid overtime. Some might try to average bi-weekly payments to help make up for uneven work schedules. This could cause problems in a wage dispute because it goes against Fair Labor Standards Act (FLSA) overtime rules.  

Topics: overtime rules, nanny payroll tax, nanny overtime, nanny tax calculator

A HWS referral partner who operates a nanny referral agency recently contacted our office with the following question:

Topics: nanny payroll, nanny hourly wage, nanny overtime

When you’ve found a household employee that you and your family loves and trusts, it’s a wonderful feeling. Soon, you can start relying on this person to take care of things in your absence. But, if this means that you start asking for them to work more hours during the week or on the weekends, you should know the facts about overtime versus banking hours.

Topics: overtime rules, nanny overtime

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!

Topics: overtime rules, nanny overtime

When you have found a nanny that you trust and that your kids love being around, it’s a great feeling. Finding the right fit for your family can be tough at first, but once you’re over that hurdle, you can begin to rely on your nanny taking good care of your family while you’re away. If this means that you ask her to occasionally work more hours during the week or on the weekends, you should know the facts about paying your nanny overtime. Here are some basic 'must-know' facts about nanny overtime.

Special Update May 18, 2016: Effective December 1, 2016, ANY employee in the US, exclusive of live-in domestics,  who earns less than $913 for a 40 hour week ($22.83/hour) MUST be paid hourly and MUST be paid overtime at the rate of 1.5 times the regular hourly wage for hours over 40 in a 7 day work week.

Topics: nanny overtime

There’s all kinds of advice floating around out there about how to handle a nanny’s wages. Here, we’ve included only the facts on nannies and overtime:

Topics: nanny hourly wage, nanny non-exempt employee, nanny overtime, nanny work agreement, nanny contract

Did you know that when you employ a nanny, housekeeper or other household employee who does not reside in your household, you must comply with FLSA overtime regulations?

Topics: FLSA, overtime rules, nanny hourly wage, domestic employer legal responsibilities, nanny overtime

The Lamonica v. Safe Hurricane Shutters Inc. (11th Cir., 11-15743, 3/6/2013) ruling by the Eleventh Circuit Court confirmed that a worker's immigration status has no bearing on the worker's right to sue to recover unpaid overtime pay. The decision affirmed a lower court ruling in favor of the undocumented workers that awarded unpaid overtime and damages.

Topics: domestic employer legal responsibilities, nanny overtime