Paying nannies when employers take a vacation is a nearly universal standard in the professional childcare industry. This practice is a standard expectation in a professional employer-employee relationship, not merely a courtesy. Formalizing this payment within an employment contract is necessary for attracting and retaining qualified caregivers. This guide clarifies the industry standards, legal mandates, and contractual language needed to manage a nanny’s compensation when your family is away.
The Industry Standard and Why Payment is Expected
The standard practice of paying a nanny during a family vacation stems from recognizing the nanny as a professional, W-2 household employee. This arrangement is based on the principle that the employee is “ready, willing, and able to work.” When the family departs, they are choosing to suspend the need for childcare services, which is an employer decision, not an employee request.
A professional nanny relies on a predictable, consistent income to maintain financial stability. Withholding pay during a family’s absence penalizes the employee for the employer’s choice to take time off. This standard ensures the nanny remains financially secure and available to resume work immediately upon the family’s return.
Understanding Guaranteed Hours and Legal Requirements
The legal basis for paying a nanny during a family vacation is rooted in the concept of guaranteed hours, standard for non-exempt household employees. Under the Fair Labor Standards Act (FLSA), most nannies are classified as non-exempt, meaning they must be paid an hourly wage and receive overtime for hours worked over 40 per week. Employers guarantee a set number of hours per week to ensure the nanny receives a consistent weekly income, regardless of whether the family uses the full amount.
This guaranteed compensation commits to the employee’s availability during a specific work schedule. If a family goes on vacation, the nanny is still available to work and must be paid for the full guaranteed time. This payment is compensation for the agreed-upon weekly working time, not a form of paid time off (PTO). Failing to pay for guaranteed hours when the family is away can result in wage disputes and legal liability under federal and state wage laws.
Essential Contract Clauses for Family Vacation Pay
Formalizing the payment agreement in a written employment contract prevents misunderstandings. The contract should define “Family Vacation Time” as a mandatory, employer-directed time off period. This confirms the time off is initiated by the employer and does not count against the nanny’s personal accrued vacation balance.
The contract must clearly state the number of paid family vacation weeks the employer intends to take per year, with two weeks being a common industry practice. A notification clause should detail the advance notice the family must provide before taking a trip, often 30 days. The agreement must confirm the nanny’s pay remains unchanged, based on guaranteed weekly hours, during this absence. Some contracts outline light duties the nanny may perform while the family is away, provided these duties fall within the original job description.
How to Distinguish Between Family Vacation and Nanny PTO
The distinction between paid Family Vacation Time and the nanny’s personal Paid Time Off (PTO) is often confusing. Family Vacation Time is time off chosen and mandated by the employer because the family does not require services. Since the nanny remains available to work, this time is paid and does not deplete the nanny’s accrued benefit bank.
Nanny PTO is time off requested and chosen by the employee for personal reasons, such as their own vacation or appointments. This employee-requested time off counts against the nanny’s annual accrued PTO balance, which typically ranges from 10 to 15 days for a full-time employee. The difference is the initiator: the employer mandates Family Vacation Time, while the employee requests to use personal PTO.
Alternative Scenarios and Long-Term Breaks
When a family requires the nanny to travel with them, the scenario changes from paid time off to a working trip. This “Travel Nanny” arrangement requires the employee to be paid for all hours worked, including travel time, often resulting in overtime pay. The family must cover all travel-related expenses, such as airfare, lodging, and meals.
For long breaks, such as a three-month summer hiatus, the family must address the employment status in the contract. If the family wishes to retain the nanny for the fall, they must typically pay a reduced “retainer” fee or continue the guaranteed hours. If the family terminates employment for the summer, the nanny should receive severance pay.