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Nannies are non-exempt employees of the family they work for. What does this mean?
Just what is an exempt employee exempt from? The Fair Labor Standards Act (FLSA) sets classification guidelines and requires that an employer classify their workers as either exempt or non-exempt based on the FLSA-established criteria.
The term non-exempt employee refers to a worker who IS subject to the terms of the FLSA regarding such issues as overtime compensation and minimum wage coverage, as well as how frequently the worker must be paid.
It is important to note that the FLSA specifically calls out domestic employment (housekeepers, maids, nannies, etc.) in the statue as non-exempt employees, covered by the rules and protections of the FLSA. This is not a grey area, subject to individual interpretation. |
An exempt employee is paid a salary and exempted from these FLSA rules. Typically, only executive, supervisory, professional or outside sales positions are classified as exempt employment. Exempt employment will also include highly skilled computer-related employees and licensed professionals, such as doctors, lawyers, architects, engineers and certified public accountants.
Employers often believe, incorrectly, that by paying a salary the employee becomes exempt. However, just as applying the labels "employee" or "independent contractor" in a work agreement doesn't determine a worker's actual status in the eyes of the IRS or the law, the same is true for exempt and non-exempt employees in the eyes Department of Labor. The FLSA legislation was designed to cover, and protect, as many workers as possible and there is no doubt that nannies are covered under the act.
For More Information contact HomeWork Solutions, Inc.
at 1-800-NaniTax or e-mail and submit a question.
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