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Wednesday, June 09, 2010

Nanny Contracts & Work Agreements

The New York "Domestic Workers Bill of Rights" is the subject of intense scrutiny in the New York media right now. Both legislative chambers have passed their own versions of the law, and they are currently working on a process called "reconciliation" where the chambers negotiate with each other on a final bill.

Nanny employers are realizing two things. The first is that they can get themselves in hot water when they pay a nanny a "salary" without any accounting for hours. Nannies under FEDERAL law are non-exempt (hourly) employees. It is not a matter of negotiation between nanny and family, it is the law. Families can still pay a salary, they just need to be careful to state the employee's compensation in hourly rate terms, with a weekly base guaranteed, and to keep track of hours worked contemporaneously. How do you do this? The HomeWork Solutions' Hourly Rate Calculator will perform the translation for you, and they you simply memorialize it in your work agreement (contract).

The second realization is that the nanny work agreement or nanny contract is an effective tool to protect the family and the nanny from misunderstandings and wage disputes. Spell it out up front and you have no issues! Disgruntled former nannies have been dragging their former employers to court over unpaid overtime disputes for the last several years. In each case the nanny prevails in the majority of the legal points. Why? Families did not do their paperwork, translate wages to hourly terms and keep accurate time tracking records. Worse, these families failed to pay for overtime outside the normal work hours (the evening they stay in town for an event until midnight for example). This is penny wise and pound foolish. When nanny works outside her agreed hours, pay her. Not only is it the right and legal thing to do, but you also keep a happy nanny!

HomeWork Solutions' free Ten Tips Series has a variety of titles designed to help nannies and nanny employers navigate common employment issues in easily digestible formats.

free nanny payroll guideProtect yourself against claims by disgruntled household employees - nannies, housekeepers and maids. Learn more about the "nanny tax" and the employer's legal and financial obligations!

Download HomeWork Solutions' free e-Book, the Nanny Payroll Tax Quick Start Guide.


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