Childcare Workers Who Provide “Preschool” Instruction Are Not Exempt From Overtime Pay as “Teachers”

The Federal Fair Labor Standards Act (FLSA) requires most workers, including nannies and other childcare providers, to be paid time and one-half for all hours over 40 they work in a week. Recently, a federal court ordered a childcare company to pay more than $92,000 in overtime pay and interest to its workers who worked more than 40 hours. In doing so, the court ruled that the FLSA exemption for teachers at elementary or secondary schools did not apply to daycare centers even if their employees provided preschool instruction and would otherwise be classified as teachers.

More significantly for household employers, however, was the court’s calculation of the hours for which the workers were owed. Noting that the daycare center kept poor or incomplete records of hours worked, the court sided with the employees in the related factual dispute about how many hours over 40 the employees worked each week.

Keeping Track of Employees Hours, Overtime, Taxes, and Pay

Under the FLSA, employers are required to keep complete and accurate records of all employee hours and wages. Household employers who fail to do so may find themselves with little evidence to fight future claims for overtime from former employees. NannyPay software can assist DIY household employers in this regard, as the pay stub generated by NannyPay can include detailed information about hours worked, wages paid, and taxes withheld. So in order to protect themselves and be able to demonstrate compliance with the law, household employers are reminded of the necessity to use and maintain some form of written system of recording the number of hours the nanny worked each week, and which should also document that the nanny was properly paid for all hours.