According to a recent New York TImes article, certain nannies in New York are making $180,000 per year and more. They are hired by the wealthy, and are ‘permanently’ on call.  Setting aside whether the pay is justified or not, there are a few take-aways:

#1: Don’t Forget the Nanny Contract

We haven’t heard whether or not the $180k nannies have written work agreements. But we’re pretty sure they do. And they’re likely long ones at that.

Regardless, it’s a reminder that, whether a nanny is making $15/hour or $200,000/year, they still need a nanny work agreement. In addition, there’s no need for the contract to be 15 pages long — even if the nanny is making $200k/year.  Many executives of large companies have contracts that are less than 10 pages.  A nanny contract is no different.

#2: You’re Still a Non-Exempt Employee

Regardless of the pay, a nanny is still a non-exempt employee.  That means they’re subject to work hour and wage laws.

That said, there’s a big exception.  Live-in nannies are non-exempt employees, but they aren’t owed overtime under the law.  Live-out nannies, on the other hand, are owed overtime.

#3: Don’t Forget Worker’s Comp

Some states mandate worker’s comp for nannies, while others don’t.

New York is one of the states requiring workers comp for full time employees. Thus, even if a nanny is being paid $180k, the parents must pay for a workers’ comp policy covering her.