Nanny Pay and the Overtime Rule of 2016

On December 1st, 2016 the final rule for the overtime laws in the Fair Labor Standards Act takes effect.    The rule simplifies overtime laws and makes them easier for employers and employees to understand.

The final rule will:

  • Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
  • Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

Nannies, and other domestic workers, are non-exempt and protected under The Fair Labor Standards Act.  Therefore, a nanny who works over 40 hours in a week is required to earn time and a half for those additional hours.

For example, lets say a nanny works 45 hours a week and earns $617.50.   Her hourly salary is $13/hr for the first 40 hours and $19.50 for the additional 5 hours worked that week.

Watch the video for more information on nanny overtime pay and the Fair Labor Standards Act.

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