Being a nanny today is not what it was twenty years ago. These days there are so many more resources and ways to connect with other families and nannies!
But by no means does that imply that every family working with a nanny knows about things that are largely considered to be industry standards. It doesn’t even mean that every nanny knows about these things!
Not so long ago, a live-in nanny might answer a classified ad for a position, move in, and receive nothing beyond hourly pay – often a check with no taxes withheld and no written agreement in place. For a young nanny new to the field, it was easy to feel grateful just to have work and a place to live, without realizing how much was being left on the table.
Arrangements like that could unravel quickly. A nanny paid only for part-time hours might have to take a second job to make ends meet, then feel pressured to drop that job at a moment’s notice whenever the family needed last-minute care – even though being “on call” outside a regular schedule was never agreed upon or paid for.
Without clear guaranteed hours and legal pay in place, a nanny in that situation is left absorbing the family’s scheduling gaps. Every trip the family takes, every week grandma comes to visit, becomes lost income for the nanny – and that is not the nanny’s fault.
Live-in arrangements can add another layer of complication. We have seen situations where a nanny’s entire living space was rearranged during a home remodel without any notice, and where the family calculated the going rent for a room and deducted it straight from the nanny’s monthly pay. That is exactly the kind of thing industry standards exist to prevent.
Experiences like these are truly difficult, and honestly no nanny should have to go through them. Often the family simply isn’t educated about what it means to employ a nanny, and the nanny isn’t yet familiar with the industry either. But acting only in one’s own best interest, without any consideration for the person caring for a child every day, leaves that nanny feeling like they don’t really matter to the family.
The good news is that the industry has come a long way. With access to nanny forums and communities today, it is much easier to recognize when someone is selling themselves short simply for lack of good information about the field.
Each week, we receive numerous questions from nannies, and see posts in our Facebook community, about the topic of contracts, guaranteed hours, legal pay, sick pay, paid time off and mileage reimbursement. These items are considered basic Nanny Industry Standards. These things should be a standard of every working relationship with a nanny. Let’s break down how each of the Nanny Industry Standards work:
Contract
Non-negotiable, no pun intended. Contracts are a MUST. Even for short-term positions. These should ideally be drafted, reviewed and discussed, then re-drafted with any agreed-upon changes. Having a thorough contract can avoid confusion, hurt feelings, and potentially awkward conversations at a later date. It’s an excellent time to hash out all of the details of the position and discuss various scenarios that may arise. If you are in need of a nanny/babysitter contract or nanny share contract specific to Washington state laws and regulations, check out our easy to understand contracts starting at $29.99.
Guaranteed Hours
This is something that nearly every nanny is seeking, and they should. Guaranteed hours should be for the number of hours a nanny works on average. If the typical workweek for a nanny is 40 hours, then they should have 40 hours guaranteed each week. A nanny needs to be able to count on his or her income, and know what to expect each month for their budget. If the family decides to travel, they are taking the nanny’s work with them. It’s not the nanny’s fault that they have no children to care for, right? Think of it like preschool: if a family travels while the preschool is open, they still have to pay the regular monthly rate.
Sometimes a nanny and their family can discuss and agree upon other duties that the nanny might be open to doing during the time the family is away. For example, if it is within the scope of the nanny’s job to help out with keeping kids’ rooms organized, then it’s possible to have the nanny help out with that while the family is away. The key here is to discuss and agree upon things and write it down in the contract.
Legal Pay
Do nannies still get paid under the table? Yes. Are there risks involved? ABSOLUTELY! If an employer gets caught paying their nanny under the table, they are liable for back taxes AND hefty fines by the Internal Revenue Service and others. As a nanny, getting paid under the table means that you are not eligible to receive unemployment if you need it, and your documented work history will not be accurate when determining how much in Social Security payments you will receive later in life. Read more about legal pay here.
Sick Pay
This is a new law for 2018. Sick pay is accrued at one hour per 40 hours worked. If you as a nanny are not being paid legally, you are likely missing out on this important benefit. This might seem like a lot of record keeping if you are the employer, but a payroll company like our friends at Growing Numbers Accounting and Bookkeeping can help to track this easily. Any unused sick leave of 40 hours or less must be carried over to the next calendar year. Read more about paid sick leave here.
Paid Time Off
It’s typical for a full time nanny to ask for two weeks of paid time off per year. It’s common for this to be one week employer choice and one week nanny’s choice, but more and more nannies are asking for it to be when they choose. The amount of paid time off requested can increase when a nanny has more years of experience.
Mileage Reimbursement
This can help to offset the nanny’s cost of operating her vehicle while she uses it on the job. MileIQ is a helpful app for easily tracking mileage. The 2018 rate for mileage reimbursement set by the IRS is $0.545 per mile. Any amount you reimburse above this set rate is considered taxable income to the nanny. If you are not reimbursing your nanny for mileage, now is a great time to start! While it is not technically required unless the nanny’s cost of operating her vehicle brings her hourly rate below minimum wage, it goes a long way in making your nanny feel well-cared for.
Bonus Industry Standard: Live-In Nannies
This area is worth covering because live-in nannies are so often taken advantage of, and because the topic still comes up regularly. Should a family ever “trade” a living space for childcare? There is no single answer that fits every situation imaginable, but usually the answer is no. The nanny still needs to have an income!
Having a live-in nanny is a HUGE benefit to the family (they are the ones asking that the nanny live there, after all) and a HUGE sacrifice to the nanny (limitations on guests, always being “at work” even when not on the clock, etc.) The industry standard for live-in nannies is to NOT have room and board deducted from their hourly wage.
Working without these industry standards leaves a nanny struggling to make ends meet and feeling like the family does not care about their well-being. The families who get it right make it a point to ensure their nanny is compensated properly and feels well-cared for. If you are not providing these things for your nanny, or if you are a nanny who is not receiving these industry standards, it’s never too late to implement or ask for these things in your working agreement!