Under federal law, non-live-in nannies are owed overtime at 1.5 times their regular rate after 40 hours in a workweek, but several states add daily thresholds or deny the federal live-in exemption outright. If you employ a nanny, the rule that actually governs your paycheck depends on where you live, not just on the federal floor. Checking your state labor department page and tracking hours accurately are the two steps that protect you from a back-pay claim.
TL;DR:
- California, New York, Massachusetts, Hawaii, and Maryland may impose stricter rules than federal law; for multistate care, rules where work occurs apply.
- State daily overtime does not replace the federal weekly test; calculate both thresholds and pay whichever produces more overtime compensation for the nanny.
- For salaried nannies, divide weekly pay by covered hours to find the regular rate, then include qualifying bonuses before calculating overtime.
- Exclude sleep time only when facilities are adequate and rest is largely uninterrupted; document the agreed period, usually eight hours, and any overnight interruptions.
- Log hours each day, alongside sleep agreements, interruptions, and bonuses; accurate records help resolve wage questions before they become claims.
Table of Contents
- Federal Baseline: FLSA Basics for Domestic Workers
- How Overtime Rules for Nannies Differ by State
- State Spotlight: California, New York, Massachusetts, Hawaii, and Maryland
- How to Calculate Nanny Overtime Correctly
- Live-In Status and When Sleep Time Counts as Hours Worked
- Common Mistakes Household Employers Make
- Building Recordkeeping Habits That Hold Up
- A Practical Note on Why Tracking Matters
- How CareTracker Helps You Stay on Top of Nanny Pay
- FAQ
- Sources
Federal Baseline: FLSA Basics for Domestic Workers
Most nannies are covered employees under the Fair Labor Standards Act, which means they're entitled to at least the federal minimum wage and overtime pay for hours worked beyond 40 in a single workweek. The overtime rate is 1.5 times the regular hourly rate, and it applies regardless of whether the nanny is paid hourly, by salary, or by a flat weekly fee.
A separate rule applies to nannies who live in the home. The live-in exemption under Fact Sheet #79B allows these workers to be exempt from federal overtime requirements, though they still must receive at least minimum wage for all hours worked. Casual babysitters and companions providing fellowship care have their own narrower exemptions.
- Non-live-in nannies: overtime at 1.5x after 40 hours/week under federal law.
- Live-in nannies: may be exempt from federal overtime, but minimum wage still applies.
- Casual babysitters: generally exempt from both minimum wage and overtime rules.
Under federal law, non-live-in domestic workers are entitled to overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek, while live-in workers may be exempt under the federal residency test. That exemption is where state law most often diverges from the federal baseline.
How Overtime Rules for Nannies Differ by State
The federal floor is the starting point, not the finish line. A growing number of states have passed their own domestic worker protections, and many of them either raise the bar above the FLSA or remove the live-in exemption altogether. Some states track the federal rule closely: overtime kicks in after 40 hours a week, live-in workers may be exempt, and there's no separate daily threshold. Other states take a noticeably different approach, requiring overtime after a set number of hours in a single day regardless of the weekly total, or explicitly denying the live-in exemption so that live-in nannies earn overtime just like any other employee.
Multiple state-focused guides identify California, New York, Massachusetts, Hawaii, and Maryland as states with stricter rules, whether through daily overtime thresholds, extended coverage for live-in workers, or both. If you employ a nanny in one of these states, assume the federal baseline alone will not tell you the full story.
The practical challenge is that labor department websites use inconsistent terminology, and a quick search for "nanny overtime laws" often surfaces outdated or conflicting advice. When you check your state's resources, look for a few specific terms:
- "Domestic worker bill of rights" or "domestic service employee," which often signals a dedicated statute with its own overtime rules.
- "Daily overtime" or "overtime after [X] hours per day," which flags a daily threshold separate from the weekly count.
- "Live-in exemption" or "residential employee," which tells you whether your state follows or departs from the federal exemption.
- "Regular rate of pay," which indicates guidance on what must be included when calculating overtime.
Most state labor department sites have a wage and hour division page with FAQs or fact sheets specifically for household employers. If the state page is unclear or silent on domestic workers, that's usually a sign to call the department directly rather than assume the federal rule applies by default. For nannies who work schedules that cross state lines, such as families who split time between a primary residence and a vacation home, the rules of the state where the work is actually performed typically govern that portion of the pay period.
When a state statute conflicts with federal law, the rule more favorable to the worker generally controls. That means a state daily overtime threshold doesn't cancel the federal weekly threshold: a nanny could be owed overtime under either test, whichever produces more pay. This layering is exactly why flat-fee or flat-salary arrangements create so much risk. A family that pays a flat $800 a week assuming it "covers everything" may be underpaying once actual hours and the applicable state rule are run through the math.
Because state resources vary in clarity and some issues (like multi-state work or retroactive claims) get complicated fast, it's worth consulting a payroll professional or employment attorney once your situation goes beyond a straightforward 40-hour week. A short consultation is usually far cheaper than a wage claim.
State Spotlight: California, New York, Massachusetts, Hawaii, and Maryland
These five states illustrate how far the rules can diverge from the federal baseline, and why a one-size answer doesn't work for household employers.
- California uses daily overtime concepts on top of the weekly standard and extends strong protections to live-in nannies, so a nanny working a long single day can trigger overtime even in a week that stays under 40 hours total. Families here should budget for California-specific rules before assuming a flat weekly rate is safe.
- New York draws a sharper line between live-in and non-live-in status, with distinct daily and weekly thresholds depending on which category applies, making correct classification the first step in any pay calculation.
- Massachusetts has domestic worker protections that address scheduling, notice, and overtime specifically for household employees, going beyond the bare federal minimum.
- Hawaii extends notable wage protections to domestic workers, which affects how families there should structure pay for extended or live-in care.
- Maryland likewise maintains domestic worker protections that shape overtime eligibility differently than the federal default.
A nanny working six 10-hour days in California, for example, could owe daily overtime on each of those days even if the weekly total lands at 60 hours, which would already trigger federal overtime, but the daily layer can change which hours get the premium rate.
How to Calculate Nanny Overtime Correctly
Start with the regular hourly rate. For an hourly nanny, that's simply the stated rate. For a salaried nanny, divide the weekly salary by the number of hours the salary is intended to cover, then use that figure as the base for overtime math. Non-discretionary bonuses, such as a promised holiday bonus tied to performance or attendance, generally must be folded into the regular rate before calculating overtime.
- Step 1: Calculate the regular hourly rate, including eligible non-discretionary bonuses.
- Step 2: Count overtime hours using the federal 40-hour weekly threshold, or your state's daily threshold if one applies.
- Step 3: Multiply overtime hours by 1.5 times the regular rate (or your state's required multiplier, if higher).
A WHD opinion letter confirms that overtime premium payments contingent on excess hours may be excludable from the regular rate under certain conditions, depending on how the agreement is structured. See the letter for the specific sections involved. Flat-fee arrangements are the most common pitfall: a flat overnight fee might work out to less than minimum wage once actual hours are tallied, and it almost never accounts for overtime correctly.
Live-In Status and When Sleep Time Counts as Hours Worked
A nanny is generally considered "live-in" when residing in the employer's home for an extended period, such as several consecutive days a week, rather than just occasionally staying over. Sleep time can be excluded from compensable hours only under specific conditions.
- Adequate sleeping facilities must be provided, and the agreed sleep period is usually eight hours.
- Sleep must be largely uninterrupted; frequent interruptions can convert the whole period into compensable time.
- There should be a clear agreement, ideally in writing, about which hours are considered sleep time.
Field Assistance Bulletin 2016-1 treats most on-site time as hours worked, with sleep time as a narrow exception. Document the agreement and track actual interruptions. A nanny woken three times a night to tend to a child isn't getting the uninterrupted sleep the exclusion requires, and that time likely needs to be paid.
Common Mistakes Household Employers Make
A flat weekly salary doesn't automatically satisfy overtime obligations. Fix it by tracking actual hours and recalculating the regular rate whenever the schedule changes.
- Mistake: Assuming a flat salary covers all hours worked. Fix: Track hours and recalculate the regular rate.
- Mistake: No written sleep-time agreement. Fix: Put it in writing and keep practice consistent with it.
- Mistake: Leaving bonuses out of the regular rate. Fix: Include non-discretionary bonuses in every overtime calculation.
Pro Tip: If you suspect you've underpaid a nanny, pull together whatever hours records you have, run the math against your state's rule, and address it directly rather than waiting for a claim.
Building Recordkeeping Habits That Hold Up
Accurate records turn a stressful audit into a quick lookup. Fact Sheet #79C notes that poor recordkeeping is a leading cause of employer liability, and it's also the easiest problem to prevent.
- Log hours worked each day, not just a weekly total.
- Record sleep and meal period agreements alongside actual practice.
- Note any bonuses or reimbursements as they occur, not at year's end.
A nanny timesheet template or a dedicated time-tracking app makes this routine instead of a scramble.
A Practical Note on Why Tracking Matters
Fair pay isn't just a legal box to check. Accurate hours protect the nanny's paycheck and protect your family from a dispute nobody wants.
— mercedes
How CareTracker Helps You Stay on Top of Nanny Pay
An app for caregivers can let your nanny log hours, request schedule changes, and share them in one shared calendar, so there's never a question about what was actually worked. Families get a running, time-stamped record instead of a guess at the end of the week.
- Nannies can track hours, submit time-off requests, and view their schedule in one place.
- Families get a clear, shared log that helps make regular-rate and overtime math straightforward.
- Care details can be logged alongside time records to help keep important information accessible.
When the numbers don't add up or you're not sure past pay was correct, our Premium consultation walks through your specific situation, and our Standard Payroll Consultation package helps you set up compliant pay going forward. Start logging hours today with our nanny time tracking tool and fix payroll gaps before they become a claim.
FAQ
In what state do nannies get paid the most?
Nanny pay varies widely by local market and cost of living, and no single mandatory rate applies nationwide. Rather than chasing a "highest paying state," focus on your local market rate and your state's overtime rules, since those determine what you actually owe.
What states pay overtime after 8 hours?
A handful of states, including California, apply daily overtime thresholds on top of the federal 40-hour weekly rule, which can trigger overtime for a single long day even in a lighter week overall. Check your specific state labor department page, since daily thresholds are the exception rather than the rule nationally.
Is $30 an hour good pay for a nanny?
Whether an hourly rate is competitive depends entirely on your local market, the nanny's experience, and the scope of duties, so there's no universal benchmark. What matters more for compliance purposes is that any rate you set still triggers correct overtime pay once hours exceed 40 in a week, or your state's daily threshold if one applies.
What counts as overtime for a nanny?
Overtime is pay at 1.5 times the regular rate for hours worked beyond the federal 40-hour weekly threshold, unless the nanny qualifies as live-in and the state follows the federal exemption. Some states remove that exemption or add a daily threshold, so the correct answer depends on where the work is performed.
Do live-in nannies get overtime pay?
Under federal law, live-in nannies may be exempt from overtime, though they still must receive at least minimum wage for all hours worked. Several states deny this exemption entirely, so live-in nannies in those states earn overtime the same as non-live-in workers.
Sources
Before finalizing a pay structure, review the federal fact sheets that define coverage and exemptions, then confirm your state's position since state rules can expand on, but never reduce, federal protections. Fact Sheet #79D clarifies what counts as "hours worked" in edge cases like waiting time, which is useful if your nanny's schedule includes irregular gaps.
- Fact Sheet #79B: Live-In Domestic Service Workers Under the Fair Labor Standards Act (FLSA)
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