Overtime is one of the most misunderstood parts of nanny pay. Families often assume a weekly salary covers everything. Under federal law, it usually doesn't — because nannies are non-exempt employees entitled to overtime.

The core rule: time and a half after 40

Under the Fair Labor Standards Act, household employees like nannies must be paid at least 1.5× their regular hourly rate for every hour worked over 40 in a workweek. This isn't optional and it isn't a bonus — it's a baseline wage requirement.

You can't get around overtime by paying a flat weekly salary. If a 'salary' works out to less than the required regular-plus-overtime pay for the hours actually worked, you owe the difference.

A quick calculation

Say your nanny earns $25/hour and works 45 hours one week. The first 40 hours are paid at $25 ($1,000). The 5 overtime hours are paid at $37.50 ($187.50). Gross pay for the week is $1,187.50 — before taxes.

  • Regular: 40 hours × $25 = $1,000
  • Overtime: 5 hours × $37.50 = $187.50
  • Gross: $1,187.50

The live-in nuance

Federal rules treat live-in household employees a little differently — they must still be paid at least minimum wage for all hours worked, but the federal overtime requirement can differ. State law often overrides this, and some states require overtime for live-in workers or set their own daily thresholds. Always check your state's rules, since they can be stricter than federal.

"Regular rate" can include more than base pay — certain guaranteed bonuses factor in. For most families paying a straightforward hourly wage, the base rate is the regular rate.

How to stay on the right side of it

  • Track actual hours each week — a simple timesheet is enough.
  • Agree on an hourly rate, not a lump salary, so overtime is unambiguous.
  • Apply 1.5× past 40 hours in every workweek, automatically.
  • Check your state, which may add daily overtime or live-in rules.

House applies overtime automatically the moment weekly hours pass 40 — so the stub is always correct without you doing the math.

Let House do the math

The bottom line

Nannies get overtime — time and a half after 40 hours a week — and it's the law, not a courtesy. Track hours, pay by the hour, and let the overtime rate kick in automatically, and you'll never owe a back-pay surprise.