In New York, nannies must be paid minimum wage and overtime. They must also be provided with a wage notice at the time of hiring, and accurate wage statements spelling out their hours and pay. Most families fail to go through these formalities with their nannies, preferring instead to pay straight time, in cash and not track hours.
Most of the time, this informal, off-the-books arrangement works out fine, for all involved. But, when it does not, the nannies have a huge advantage over their former employer.
Under the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) nannies are entitled to both minimum wage and overtime. There are differences for live-in nannies, this article only applies to nannies that do not live in the home of their employer.
The NYLL also imposes $5,000 dollar fines if an employer fails to provide a wage notice, and another $5,000 fine if the employer does not provide accurate wage statements breaking down the hours worked, hourly rate and total pay.
Nannies are non-exempt employees, and must therefore be paid for all time worked and overtime at time and a half for all hours worked beyond 40 in a given week. And, per the NYLL, their rate of pay must be clearly spelled out in writing.
Families that are not paying overtime to their nannies, are not only taking advantage of their nanny, they are also breaking the law. The amount that a nanny can recover in an overtime or minimum wage lawsuit are considerable. In addition to the $10,000 in statutory damages for wage notice and wage statement violations, they are also liable for double the unpaid wages plus interest, costs and attorneys’ fees. In other words, a few unpaid hours per week can quickly add up to tens of thousands of dollars in damages.