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Should You Ask for Guaranteed Hours?

By GTM Payroll and HR Services

INA Blog Should You Ask for Guaranteed Hours 1Guaranteed hours are the set number of hours you will be paid each week at your hourly rate. If you work the number of agreed-upon hours – or fewer – you get paid the same. Any hours worked over your guaranteed hours would be paid on top of your typical pay considering an overtime rate for any hours worked over 40 in a workweek.

In exchange for guaranteed hours, you are guaranteeing your availability to your family during those hours.

How do guaranteed hours for a nanny work?

With guaranteed hours, your family would set an hourly rate, an overtime rate (at least time-and-a-half), and the typical number of hours they would need you each week.

It is important to note that guaranteed hours only apply to the schedule you have set with your family. On those days when you need to come in early or stay late and you go over your guaranteed hours, then you will need to be paid for those extra hours. If those extra hours put you over 40 hours in a workweek, then you will need to be paid time-and-a-half for any hours over 40.

Why do nannies prefer guaranteed hours?

You have bills to pay and expenses to account for just like anyone else. Knowing what your pay will be each week helps with your personal budget and finances. With guaranteed hours, you are provided with a consistent income.

Are guaranteed hours for a nanny like a salary?

With guaranteed hours, a nanny who works 40 hours in a week gets paid for those hours at their agreed-upon hourly rate. Anything over those 40 hours would be paid at an overtime rate. With a salary, you would be paid a flat rate no matter how many hours you worked and would not receive overtime pay. This is illegal for household employees.

How do guaranteed hours work with paid time off?

If you choose not to work during the time you agreed to be available, then that would be time off (paid or unpaid depending on your nanny contract or whether you still have any paid time remaining). Calling in sick or taking a vacation day would not be part of your guaranteed hours and would count towards your allotment of time off. If you are available, and your family does not need you to work, then you would be paid as usual for those hours.

How do guaranteed hours work when the family is on vacation?

If your family goes on vacation and are not bringing you along, then you would be paid your guaranteed hours, because you are available to work even though you are not needed for that week. Some families may just tell you to take the week off. Others may have you do errands, odd jobs, or light housework and organizing while they are away. Any tasks should fall within your normal working hours and be included in the job description. If that is the expectation, it should be spelled out in your nanny contract so there are no surprises when they take a vacation.

Read more details about guaranteed hours, including examples of how they work and the benefits to a family for offering them.

 

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Since 1991, GTM Payroll Services has been working with nanny agencies and their families to give them the best value when it comes to payroll and taxes. Our process improvements and efficiencies have kept costs down, and we’re committed to keeping our clients ecstatic. In addition, GTM is the only household payroll provider that offers in-house workers’ compensation. This saves families time and effort in securing coverage and handling audits and claims.

If you’re a nanny that knows a family that could use GTM’s nanny tax and payroll service, send them our way. If they sign up with us, you’ll get a $75 Amazon gift card! Just fill out this form.

Visit us at GTM.com/household, or call (800) 929-9213 to learn more about our nanny payroll and tax services.

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