Don’t Make This Mistake With Your Nanny – featuring GTM Payroll & HR

by | Jul 7, 2024 | Uncategorized | 0 comments

Establishing a healthy relationship with your nanny or household staffer is essential, and pay is a major part of that relationship. This article by GTM Payroll & HR discusses two key terms in the household employment industry: guaranteed hours and banking hours. Guaranteed hours refer to the set number of hours a nanny is paid for each week, regardless of whether they work all those hours. This arrangement ensures that nannies receive consistent pay, similar to daycare fees, even if their services are not needed for the full contracted time. The nanny guarantees their availability during these hours, and any extra hours worked beyond the guaranteed hours are compensated at an overtime rate if applicable.

Banking hours, on the other hand, is an illegal practice where families ask nannies to make up for any unworked guaranteed hours at a later time without additional pay. For instance, if a nanny is not needed for a few hours one week, the family might request them to work those hours another week without extra compensation. This violates the Fair Labor Standards Act (FLSA), which mandates that covered employees, including nannies, must be paid for all hours worked in a workweek.

The article further explains that banking hours can damage the relationship between families and their nannies, leading to frustration and burnout. It advises against this practice, emphasizing the importance of treating nannies as professionals to maintain a positive working relationship. Additionally, it clarifies that while adjusting hours within the same workweek may sometimes be permissible, it often depends on the specifics of the nanny contract. Families are also encouraged to consider alternative arrangements, such as having nannies perform other duties during family vacations, to ensure compliance with labor laws and maintain a fair and respectful employment relationship. Follow these guidelines – don’t make this mistake with your nanny!