What's the Standard: Guaranteed Hours
- Nanny Rachel
- Mar 2, 2020
- 4 min read
In today’s What’s the Standard Wednesday post we are going to talk about a big one for our industry. It can seem confusing and unnecessary to some folks, but I promise to a nanny, it is a very important benefit.
We are talking about Guaranteed Hours.
What is Guaranteed Hours? Well, the short definition is: Guaranteed minimum weekly income and schedule for your nanny. It seems like something that should be a given. Most nanny employers have a salary, but they make a high enough salary that they are considered “exempt” from overtime by the IRS.
Legally, you can’t pay a salary in the classic terms of a salary. In a classic salary situation you can work 30 hours or 70 hours and still receive your same weekly pay. Nannies are classified as “non-exempt” which means that they must be paid for every hour worked and time+1/2 for ANY hours beyond 40, or 9 hours per day in California.
The industry developed guaranteed hours as a way to create consistency for nannies, their employers, and to simplify payroll. As a nanny, you say “ok, I am clearing my schedule and I guarantee that I will be available to perform my duties for the schedule we have agreed upon” in return, as an employer you agree to pay them for the hours they guarantee to be available. It makes payroll easier because you only have to adjust payroll if they work OVER their guaranteed hours or if they are out of PTO and take time off.
Down to the Details: Let’s talk situationally how it works.
Situation 1) The Family is Going on Vacation.
In your contract, you should cover what happens when you, the employer, will not be home and therefore will not be needing your nanny to provide childcare.
Personally, my contract states: “if the family does not need nanny to provide childcare, the nanny will receive the time off, paid as if worked according to wages and overtime section of the contract”
If you employ a household manager or a family assistant, your contract should reflect how those duties outside of childcare will impact time off.
But, What if we have to change our plans? That is a great question and one that also needs to be covered in your contract. What if your nanny spent a few hundred dollars in a plane ticket that isn’t refundable or made other travel plans knowing they would have that time off? That is definitely an issue that you want to discuss before it comes up and leaves someone feeling taken advantage of.
My contract states: “The family will give as much notice as possible of travel or time off. Once notice of time off is given the nanny is free to make plans for that time. (Here is the important bit) If the family’s plans change, the nanny is not required to change their plans or use PTO and the family is responsible for finding alternative care” It might seem to be weighted in the nanny’s favor, but financially, cancelling non-refundable travel arrangements can mean that your nanny isn’t able to travel for the rest of the year and could lose hundreds of dollars. Often times, your nanny will try to be flexible and work with you. Your nanny values the relationship and your time as much as their own, in this case be prepared to offer them the cost of their travel funds.
Situation 2) We pay our nanny 45 hours per week in guaranteed hours, but this week we only need her to work 35 and next week we need her to work 55. Can we just pay her her regular pay since it evens out? Simple answer: No.
This is where the IRS “non-exempt” status comes in. The situation described is call banking hours and it’s a big no-no. Your nanny MUST be paid for every hour worked and time+1/2 for hours over 40. So, legally, you must pay time+1/2 for the 10 extra hours next week. Again, Guaranteed hours means that we are guaranteeing to be available during the hours we put in the contract, most nannies are going to be flexible and give some leeway and flexible for coming in a bit early or occasionally running late, but if you choose not to use the hours they are guaranteeing, that shouldn’t negatively impact your nanny’s financial picture.
Situation 3) We pay our nanny 45 hours per week guaranteed hours, they receive 2 weeks of vacation and 6 days of PTO. Our nanny is out of paid time off and called out sick. Do we still pay their Guaranteed hours? Simple answer: What does your contract say (don’t worry parents, I say this to nannies EVERYDAY it’s not just you)
Sick days are a big issue for nannies. Why? Because we take care of children everyday that are bringing home germs and viruses and gross things. So, when it comes to sick pay my biggest tip is to have compassion. Both ways. Is your nanny calling out ALL THE TIME? Address it. Sit down and check in with them to make sure they don’t need additional time off or help. Does your nanny rarely use their time off, works when the kids (and parents) are sick? Do they often come in when they are feeling not 100%? Show them that you value their dedication by giving them an extra day off without losing income.
Are the kids sick with the flu and your nanny has an event in 2 days that they can’t miss (wedding, leaving for a trip, etc.) so they called out to be healthy? Show them you value them and understand that they can’t be sick right now. Give them an extra day off without fear of losing income, they will appreciate it more than you could possibly understand.
Now, did your nanny call or come in with a fever or really bad cold and you don’t want the kids sick so you sent them home? That would absolutely fall under guaranteed hours. Whenever you tell your nanny to stay home, it falls under guaranteed hours.
I know this is a lot to take in, it’s not easy to understand how it all works. The key to guaranteed hours is to have income security for the nanny and consistent care for the family. As with any situation an employee that feels valued and feels that their well being is valued will be more likely to come to work on time, work hard and follow through with their commitment to your family.
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