If you’re thinking about expanding your team of estate professionals to work in your home this spring, you’ll need to be aware of the responsibilities you have as a household employer.
There are a lot of details that are commonly misunderstood when it comes to onboarding domestic staff and overtime, travel pay, and proper wage calculations are among those.
Before you start your search for an employee, be sure you understand the legalities that come with household employment, so you not only attract the best of the best in the industry but also stay within compliance.
What You Need to Know
Overtime Requirements
Most household employees are considered non-exempt workers under the Fair Labor Standards Act (FLSA), which means employers are required to pay them overtime pay (1.5x hourly rate) for hours worked over 40 in a workweek.
Live-in employees might have some slightly different rules depending on the state you live in, but many states still require overtime pay. To avoid confusion, be sure to track your employee’s hours.
If you use a ‘flat weekly salary’ system, this can lead to violating overtime laws.
Unsure what counts as hours worked?
This is the time that the employee is on duty in your home, including overnight hours if the person is responsible for caring for someone in the home or is on-call for other duties. Implementing a time-tracking system is important at the time of hire to ensure your employee is paid accurately.
Travel Pay Requirements
Whether you’re planning to take your nanny on a family vacation with you this summer, you need your executive assistant to travel with you on a work trip, or you require the services of your private chef as you travel to your summer home, travel pay can get confusing for household employers.
Here are some important things to keep in mind:
- If your employee travels during the day as part of their duties (school drop offs, dry cleaning pick-up, transportation to medical appointments or sports practices, etc)., this time should be paid at your employee’s full hourly rate.
- If you choose to bring your employee on a trip with you, all working hours must be paid, including any overtime. You should also pay your employee during travel days and if that triggers overtime, be sure to take note and pay accordingly. If the employee is required to be available or is on duty overnight, pay them their full wages.
- In addition, travel expenses should be covered fully by you as the employer, including lodging, meals, and transportation. To avoid confusion and to ensure everyone is on the same page, be sure to discuss travel expectations, duties, and pay structure well in advance.
Understanding Guaranteed Hours
Guaranteed hours are a domestic staffing industry standard, which means your employees are paid for a set number of hours, regardless of whether those are fully used or not.
It’s important to note that this does not replace overtime rules. If your employee works more than 40 hours a week, overtime pay still applies.
Create a Written Work Agreement
At the time of hire, be sure you have a written work agreement drafted that outlines your employee’s schedule, guaranteed hours, wage and benefits information, travel expectations and pay, all duties, and any other specific details that are unique to your home, family, or family office.
This protects both you and your employee and reduces the risk of disagreements or misunderstandings.
Wage Rules
One of the most common mistakes household employers make is thinking that their workers are independent contractors. This is a misclassification that could cost you a lot. In-home workers are considered employees and that means you’re responsible for withholding and paying payroll taxes, providing a W2 at the end of the year, and keeping track of all wages paid.
If you’re unsure how to navigate this part of the employment process, there are a variety of household payroll service companies that can help simplify the process and take over payment to ensure you stay compliant and don’t have any unexpected taxes, fines, or fees down the road.
Why Household Staffing
Being household employer means being responsible for taking care of your employees, so you can attract and retain the best. Taking the time to understand laws, rules, and best practices around travel pay, overtime, and wages ensures you stay at the top of the curve.
At Household Staffing, we work with you to find the right match for your home or family office. Our 98.7% placement success rate speaks for itself.
So, don’t delay! Our team is ready to help you start the hiring process so you can onboard a professional employee for your home or family office this spring.
Call us today at (212) 600-2085 or complete our New Hire Form to get started.
