Benefits for Household Employees
Required by Law in all States
Minimum Wage: Household employees must be paid at a rate that meets or exceeds the Minimum Wage standards. For 2009, the Federal current wage will increase in the summer to $7.25 an hour (an increase from $6.55). However, it may be higher in certain states.
Overtime Pay: By law, every hour that exceeds 40 hours in a 7 day period must be paid at a rate of 1.5 their regular wage. For example, if your nanny makes $15 an hour you must pay them $22.50 for every hour over 40 hours in a 7 day period.
Required by Law in certain areas
Workmen's Compensation: To find out if you are required to provide workmen's compensation insurance in your state please click Here
Sick Leave: Currently, the only area to require household employes to provide paid sick leave is San Francisco, Ca. If you live in this area you should contact a tax company for more information.
Optional Benefits
Vacation/Illness: Household employers are not required by law to provide their household employees with paid vacation, sick days or holidays. (However, many families choose to offer these perks to keep their employee(s) happy and to compete with other families for the best available providers.
Medical/Life Insurance:Household employers are not required by law to provide their household employees with medical or life insurance, however, like with vacation and holiday pay, a lot of household employers are offering this as part of a benefits package.
What is fair?
Even though household employers are not required to provide their household employee (nanny) with a lot of benefits, a lot of parents still do. This is for two reasons: it helps the employer to keep a great nanny that their children love and the parents most often being to care about the nanny's well being. It is difficult to be a household employee and have little job security, yet many women (and men) still choose to do so. You will decide for yourself what is important for your family, your children and your nanny. Just remember, you may be able to hire a nanny without providing benefits but how long before the nanny finds a family that will offer them? A lot of times the childcare provider may not even feel comfortable talking with the family about it and simply just find another family that is willing to offer him/her a great package without having to advocate for it.