The "Salaried Nanny" Myth: Understanding FLSA Compliance
The "Salary" Trap
A family says: "We will pay you $1,000 a week for 50 hours of work."
The nanny agrees. Everyone is happy, right?
Wrong. This arrangement is illegal under the Fair Labor Standards Act (FLSA).
Hourly vs. Exempt
Almost all domestic workers are classified as non-exempt employees. This means:
- They must be paid an hourly wage.
- They must be paid 1.5x their regular rate for every hour worked over 40 in a 7-day workweek.
How to Fix the Offer
If your budget is $1,000 for 50 hours, you cannot simply pay a flat rate. You must reverse-engineer the hourly rate to stay compliant.
The Math:
- 40 hours @ Regular Rate ($X)
- 10 hours @ Overtime Rate ($1.5X)
- Total = 55X units of pay.
$1,000 / 55 = $18.18 per hour (approx).
The Compliant Contract:
"You will be paid $18.18/hr for the first 40 hours ($727.20) and $27.27/hr for the remaining 10 hours ($272.70), totaling $999.90/week."
By structuring it this way, you protect yourself from wage theft lawsuits while paying the nanny the expected amount.