Why Your Live-in Nanny Shouldn't "Pay" for Room & Board

Employing a live-in nanny can oftentimes be a little confusing. Many parents think that because a live-in nanny is receiving "free" room and board, they can pay their nanny less by deducting room and board from their nanny's monthly income, or pay them a lower hourly rate, or simply have their nanny work in exchange for room and board. A nanny who doesn't have to pay any rent, electricity, water, internet, cable, food, etc. surely should make less money per hour! While I understand how at first glance this seems like a fair deal, the industry standard is to pay a live-in nanny their full hourly rate...not a reduced rate. Legally live-in nannies must be paid for all hours worked, including applicable overtime (live-in overtime laws vary state by state, so it's important to check your specific state laws). In fact in some markets, such as Chicago, live-in nannies actually make MORE per hour than live-out nannies. Why? Because being a live-in nanny is extremely hard work and a huge sacrifice.

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