How guaranteed hours work and why they are important.

What Are Guaranteed Hours?

You may have heard the term “guaranteed hours” in regards to hiring a nanny and wonder what it means. Nannies, by law, can not be paid on a salary and are considered hourly employees by the IRS. By providing guaranteed hours, you are able to keep your nanny’s pay consistent each week so they know how much money they can rely on to pay bills and other expenses. By providing your nanny with guaranteed hours, you are not only giving your nanny a stable and consistent income, your nanny is guaranteeing you their availability to work during those hours.

For example, if your nanny typically works 9am-5pm Monday through Friday, they work 40 hours per week and would be paid based on 40 hours each week. If they stayed late one day and worked an additional 3 hours during the week, they would be paid hourly for those additional 3 hours (at an overtime rate of time and a half) since they are outside of their normal guaranteed hours. BUT on the other hand, if you let them leave 3 hours early on a Friday because you were going out of town, they would still get paid for their full 40 hours per week because those hours are guaranteed.

Choice

Often when you are discussing guaranteed hours, it comes down to choice. Did your nanny choose not to work or were they available and you didn’t need them to work? If they were available, and you told them you didn’t need them to work, then they should be paid their guaranteed hours.

For instance, if your family goes on vacation and your nanny is not coming with you, they would be still paid their guaranteed hours for the week. Families will sometimes just give the nanny the week off or sometimes they will ask them to help out around the house while they are away (bringing in mail, watering plants, helping organize kids’ toys or clothes). If this is expected of your nanny while you are out of town, it should be written into your contract and discussed ahead of time so everyone is aware of expectations.

Guaranteed Hours and Paid Time Off

Paid vacation and sick days are standard benefits in the nanny industry. PTO plays into guaranteed hours because if your nanny has vacation or sick days and needs to take time off, they would still get their guaranteed hours for that week and would use a PTO day. On the other hand, if they have used all of their PTO for the year and need to take off due to illness or other reason, they would take those hours off unpaid. So just because a nanny has guaranteed hours doesn’t mean they are paid the same amount 52 weeks per year if they are out of paid time off.

Why Are Guaranteed Hours Important?

Guaranteed hours are a nanny benefit that we feel strongly about at Your Happy Nest! Just as a preschool or daycare, if you decide to go on vacation or keep your child home one day because the grandparents are in town, your weekly tuition is still due. Hiring a nanny is no different! By guaranteeing hours you get the peace of mind that your nanny will be available during the agreed-upon hours that you set with them, and they are ensured the stability of a consistent paycheck!

Offering guaranteed hours is something we feel so strongly about, it is a requirement when working with Your Happy Nest to hire a nanny. It is always our goal to make a long-term successful match between a nanny and family and guaranteed hours are an important piece in that puzzle!