Why should I pay my nanny guaranteed hours?
Guaranteed hours for nannies
If you’re considering hiring a nanny, it’s important to understand nanny industry standards, and one of the more common standards you may encounter is offering guaranteed hours for your nanny.
What are guaranteed hours for nannies?
Guaranteed hours are the hours that you will guarantee to pay your nanny each week. The number of guaranteed hours should reflect your nanny’s regular schedule. For example, if you’ve hired a nanny to work for you Monday - Friday, 9am - 5pm (40 hours), you should pay her for 40 hours each week even if you decide to, for example, let your nanny go home a few hours early on Friday afternoon.
We would like to note that guaranteed hours does not mean salary. You must pay your nanny 1.5x for any hours worked over 40 hrs/wk. A salaried (exempt) employee is typically not tied to these requirements. Your nanny is a household (non-exempt) employee and subject to different rules and must be paid as an hourly employee with overtime pay, when applicable.
To better explain guaranteed hours, here are a few situations where guaranteed hours apply:
You only need your nanny 30 hours this week, but she is usually scheduled for 40 hours: you should still pay your nanny for 40 hours that week
Your family is taking off the week between Christmas and New Year’s and you won’t need your nanny to come in during that time: you should still pay your nanny for 40 hours that week
Your parents offered to watch your kids one day during your nanny’s normal schedule: you should still pay your nanny for 40 hours that week
Your family is going on vacation but your nanny did not request PTO during that time: you should still pay your nanny for 40 hours that week
You let your nanny go home a few hours early on Friday, and asked her to stay late on the following Monday to make up the hours: 1. You should still pay your nanny for 40 hours that week, and 2. You cannot bank the hours from Friday to use on Monday. You will need to pay your nanny separately for the additional hours she works on Monday.
You let your nanny go home a few hours early on Monday, and you ask her to stay a few hours late on Tuesday: it is entirely up to the nanny whether she can work late on Tuesday, and if she is unable to, you still need to pay her for 40 hours that week.
Some situations where guaranteed hours don’t apply:
Your nanny has used up all her vacation time and needs unpaid time off.
Your nanny is contracted to travel with your family but she is unable to go with you on your trip.
Why should I offer guaranteed hours to my nanny?
Most professional and experienced nannies will expect guaranteed hours, but this is an industry standard that should be offered to any nanny, regardless of experience.
Guaranteed hours can simplify your payroll process. Your nanny is paid the same each week for her regular schedule and you do not have to regularly modify your payroll.
By offering guaranteed hours, you are guaranteeing that your nanny will have availability for your family during the agreed-upon schedule. Consider this: if you sign your child up for daycare, you are required to pay for the full week, whether you bring your child or not. You pay to guarantee a spot for your child.
If you pay your nanny hourly and your schedule changes frequently, and you don’t pay your nanny for the hours you don’t use her, your nanny may need to find another family to work for during the hours that she expects you not to need her.
Paying a guaranteed weekly pay is a wonderful gesture that allows your nanny to have a living wage, and builds a lot of trust and goodwill, all of which can translate into a good and long-term relationship.
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