Whether you're employing a nanny, senior caregiver, or housekeeper, understanding when your employee is on the clock—and legally entitled to be paid—is an essential part of running a compliant household payroll.
Not only does this ensure you’re following labor laws like the Fair Labor Standards Act (FLSA), which governs minimum wage, overtime, and hours worked for household employees, but it also helps avoid misunderstandings between employers and workers.
What Is Compensable Time?
Compensable means the time an employee is entitled to be paid under the law. Compensable time includes any period when the employee is required to be working, on duty at a prescribed place of work. This includes all time the employee is not free to use for their own purposes.
When Household Employees Are On the Clock
Here are common examples of time that must be paid:
Time Spent Actively Working
This includes supervising children, preparing meals, doing laundry, driving to or from school or appointments, or assisting an elderly client. If the employee is performing job duties, that time is compensable.
Waiting Time
If an employee is required to wait—say, during a child’s swim lesson or while a senior client is at a doctor’s appointment—and they are not free to leave or use the time as they wish, they must be paid for it. This is often referred to as being “engaged to wait.”
By contrast, if the employee is completely relieved from duty and can use the time freely until needed, that period is considered “waiting to be engaged” and does not have to be paid. For example, a caregiver who is told they’re free for three hours while the family is out and can leave the premises is off the clock.
Short Breaks
Short breaks—usually shorter than 15 minutes—are considered part of the workday and must be paid. This includes quick pauses to get a drink of water or use the restroom.
Job-Related Travel During the Workday
Any travel that occurs as part of the job—driving children to school, taking an elderly client to a medical appointment, picking up dry cleaning—must be paid. Travel between multiple job sites or errands requested by the employer also count.
Required Training or Meetings
Time spent in required training or certifications—such as a CPR course or a care coordination meeting—must be paid.
When They’re Off the Clock
Not every moment the employee is on or near your property is paid time. The key is whether they’re free from duties and responsibilities.
Meal Periods
If the employee receives a bona fide meal break of 30 minutes or more and is completely relieved of duties, that time is not compensable. They must be able to leave the premises if they wish—such as walking to a nearby café or running a personal errand during lunch.
However, if they are required to remain on-site or are interrupted during the meal (for example, asked to supervise a child while eating), the meal break must be paid.
Off-Duty Time
When the employee is not scheduled, has no job duties, and is free to leave or use their time however they choose, that time is unpaid. This includes personal time in the evening for live-in employees, as long as they’re not required to remain available.
Commuting
Regular commuting to and from the worksite is not considered paid time. If your employee drives to your home to start their shift, that’s unpaid. The exception would be if you ask them to pick up groceries on the way or perform another task during their commute—in which case, that time becomes compensable.
Special Considerations for Live-In Employees
Live-in household employees are covered by most FLSA protections, though some provisions differ because their residence is the worksite. Employers may exclude certain hours—such as sleep time or personal evening hours—from paid time, but only if the employee is truly off duty and this arrangement is clearly documented in a written agreement. Some states, such as CA, do not have a sleep-time exemption for 24-hour shifts. Always ensure you are familiar with the laws in your area.
It’s important to:
- Define daily start and end times
- Clearly separate off-duty hours
- Ensure the employee has uninterrupted time for meals, breaks, and rest
Even with a live-in arrangement, accurate time records must be kept to confirm all compensable time is properly paid and state and local overtime rules are followed.
Guaranteed Hours: Providing Consistency and Stability
Many household employers include guaranteed hours in their work agreements. While not required by law, guaranteed hours provide consistency and financial stability for employees and simplify budgeting for employers.
Guaranteed hours mean the employee is paid for a set number of hours each week, even if the family doesn’t end up needing them for all those hours. However, employers cannot “bank” unused hours for future weeks. All guaranteed hours must at least cover the time actually worked, and any overtime must still be paid as required.
Stay Compliant with Confidence
Understanding what counts as paid time helps prevent disputes and builds trust with your employee. It also protects you legally. At HomeWork Solutions, we make it easy to stay compliant.
We offer a full-service solution that includes:
- Built-in time tracking for household employees (no additional fee)
- Employer tax account setup (Federal, state, and local)
- Accurate payroll processing with direct deposit (no additional fee)
- Recordkeeping and compliance support
- Filing of all required payroll tax documents
- Production of employer & employee year-end tax forms
Have questions about when your employee is on the clock or how to structure a compliant work agreement?
Call us today for a free consultation at 1-800-626-4829 or contact us for a complimentary consultation. We’ll handle the details so you can focus on your loved ones.