Nanny Guaranteed Hours: Complete Employer Guide 2026

You hired a full-time nanny for 45 hours per week. Then your in-laws visit and offer to watch the kids. Your work trip gets canceled. School starts and your hours drop. Should you still pay your nanny for the full 45 hours?

The answer is yes—if you've agreed to guaranteed hours, which is industry standard for professional nanny employment. Understanding guaranteed hours helps you structure fair compensation and maintain a positive employment relationship.

What Are Guaranteed Hours?

Definition

Guaranteed hours means: Your nanny is paid for the agreed-upon number of hours each week, regardless of whether you actually need them to work all those hours.

Example:

• You agree to 40 guaranteed hours at $25/hour
• Your nanny receives $1,000/week
• Even if you only need them 30 hours one week, you still pay $1,000
• If you need them 45 hours, you pay the extra 5 hours

Why Guaranteed Hours Exist

For the nanny:

• Income stability and predictability
• Ability to budget and plan
• Professional respect
• Recognition that they've committed their time
• Protection from fluctuating income

For the family:

• Priority scheduling from your nanny
• Nanny commitment to your family
• Better retention
• Professional relationship
• Industry standard compliance

Industry Standard

Guaranteed hours are expected because:

• Nannies structure their lives around your schedule
• They turn down other work
• They're professionally committed to your family
• Household employment should mirror professional employment
• It's the fair, ethical approach

How Guaranteed Hours Work

Basic Structure

Standard setup:

• Agree on weekly hours (e.g., 40 hours)
• Pay that amount every week
• Hours don't "roll over" if unused
• Additional hours paid on top

What guaranteed hours cover:

• Weeks you don't need childcare
• Your vacations (when nanny isn't invited)
• Your sick days at home
• Your work-from-home days
• School holidays
• Cancelled plans

What guaranteed hours don't cover:

• Nanny's sick days (handled separately)
• Nanny's vacation days (handled separately)
• Nanny's personal days
• Termination scenarios

Overtime Considerations

How overtime works with guaranteed hours:

• Guaranteed hours set the baseline
• Hours worked over 40/week may require overtime pay
• State and federal laws apply
• Track actual hours worked

Example:

• 45 guaranteed hours at $25/hour
• Regular pay: 40 hours × $25 = $1,000
• Overtime pay: 5 hours × $37.50 = $187.50
• Weekly minimum: $1,187.50
• If they work less than 45, still pay $1,187.50
• If they work more than 45, pay additional overtime

Common Scenarios Explained

When You Don't Need the Nanny

Scenario: Your parents visit and watch the kids

• Pay your nanny full guaranteed hours
• They kept that time available for you
• Your choice to use alternate care

Scenario: You take a staycation

• Pay your nanny full guaranteed hours
• They can't find other work last minute
• Your time off, not theirs

Scenario: Child is sick and you stay home

• Pay your nanny full guaranteed hours
• They were ready and available
• Offer them option to come in anyway

Scenario: Snow day, you work from home

• Pay your nanny full guaranteed hours
• Consider having them come anyway
• Your scheduling change

When Hours Increase

Scenario: You need extra hours one week

• Pay for all additional hours worked
• Overtime rules apply after 40 hours
• Track carefully
• Give as much notice as possible

Scenario: Permanent schedule increase

• Discuss and agree on new guaranteed hours
• Update work agreement
• Adjust pay accordingly

When Nanny Can't Work

Scenario: Nanny is sick

• Different from guaranteed hours
• Handled by sick day policy
• Most nannies get 3-10 paid sick days annually
• If sick days exhausted, typically unpaid

Scenario: Nanny takes vacation

• Different from guaranteed hours
• Handled by PTO/vacation policy
• Standard is 1-2 weeks paid vacation
• Scheduled in advance

Scenario: Nanny has appointment

• Handled by personal time policy
• May be paid or unpaid
• Reasonable accommodation expected

Special Situations

Scenario: Nanny is late

• Still pay guaranteed hours
• Address the lateness separately
• Document if recurring

Scenario: You send nanny home early

• Still pay guaranteed hours
• Your choice to end early
• Nanny kept time available

Scenario: Holiday falls on workday

• Most families provide paid holidays
• Standard is 6-10 paid holidays
• Separate from guaranteed hours

Structuring Your Agreement

Essential Elements

Your work agreement should specify:

1. Number of guaranteed hours

   • Weekly total
   • Typical schedule/days

2. Hourly rate

   • Regular rate
   • Overtime rate (1.5x typically required by law)

3. Overtime policy

   • When overtime kicks in
   • How it's calculated

4. What's included in guarantee

   • Employer cancellations
   • Holidays
   • Flexibility expectations

5. What's not included

   • Nanny absences
   • Termination
   • Permanent schedule changes

Sample Language

Basic guaranteed hours clause:

"Employee is guaranteed [X] hours of work per week at a rate of $[Y] per hour. This guarantee applies regardless of whether Employer requires Employee's services for all guaranteed hours. If Employer cancels scheduled work time, Employee will still be compensated for guaranteed hours. Hours worked beyond [X] hours per week will be compensated at the overtime rate of $[1.5 × Y] per hour.

Guaranteed hours do not apply when Employee is absent due to illness, vacation, or personal time, which are addressed separately in this agreement."

Flexibility Language

If you want some flexibility:

"Employer may bank up to [4] unused hours per month to be used within the same month for additional childcare needs without additional compensation. Hours not used within the month do not carry over."

Note: Even with banking language, most nanny professionals prefer straightforward guaranteed hours without banking.

Vacation and Time Off

Your Vacation (When Nanny Doesn't Come)

Standard approach:

• Pay nanny guaranteed hours during your vacation
• They're not on vacation—they're not needed
• You chose to not use their services

Alternative approaches:

• Invite nanny on family vacation (paid)
• Give nanny paid time off during your vacation
• Count as part of their vacation allocation (discuss in advance)

What NOT to do:

• Expect nanny to take unpaid time
• Force them to use their vacation
• Assume they don't need to be paid

Nanny's Paid Vacation

Standard allocation:

• 1-2 weeks after first year
• Often 5 days after 6 months
• Accrues or granted annually
• Separate from holidays

Scheduling:

• Advance notice required (2-4 weeks typical)
• Mutual agreement on dates
• Consider school schedules
• Backup care for family

Holidays

Standard paid holidays:

• New Year's Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Day after Thanksgiving
• Christmas Eve
• Christmas Day

Additional holidays to consider:

• MLK Day
• Presidents' Day
• Columbus Day
• Veterans Day
• New Year's Eve
• Employee's birthday

If work is needed on holiday:

• Pay holiday pay PLUS hours worked
• Or offer substitute day off
• Discuss in advance

Common Questions

"What if I only need part-time but it varies?"

Options:

1. Set minimum guaranteed hours: Guarantee 25 hours even if some weeks need more
2. Variable schedule with floor: Guarantee 20 hours minimum, typical 25-30
3. On-call arrangement: Lower hourly rate with no guarantee (less desirable for nannies)

Best practice: Guarantee the minimum you'll consistently need, pay for additional as needed.

"What if summer has different hours than school year?"

Options:

1. Year-round average: Calculate average hours, guarantee that amount
2. Seasonal agreements: Different guaranteed hours for summer vs. school year
3. Separate summer rate: Adjust total compensation for different schedules

Example:

• School year: 25 guaranteed hours
• Summer: 45 guaranteed hours
• Discuss and document before school year ends

"What if I need to permanently reduce hours?"

This is a significant change:

• Discuss openly with nanny
• Give adequate notice (2-4 weeks minimum)
• They may need to find additional work
• They may resign if reduction is too significant
• Be prepared for either outcome

Approach:

1. Explain the change honestly
2. Propose new guaranteed hours
3. Give time to consider
4. Formalize in updated agreement
5. Respect their decision

"What about trial periods?"

During trial period:

• Guaranteed hours should still apply
• Shows professional approach
• Builds trust
• Sets tone for relationship

If trial doesn't work out:

• Follow termination notice terms
• Pay for notice period
• Don't expect to avoid guaranteed hours

"Can I bank hours?"

What banking means:

• Unused hours "saved" for later use
• Example: Work 35 hours, bank 5, use next week

Industry perspective:

• Most nanny professionals oppose banking
• Undermines purpose of guaranteed hours
• Can lead to unpredictable overtime demands
• Better to just pay for extra hours as needed

If you do bank:

• Keep it minimal (4-8 hours max per month)
• Use within same month
• Compensate overtime if banked hours create overtime when used
• Put in writing

Financial Considerations

Budgeting for Guaranteed Hours

Plan for full payment:

• Budget for 52 weeks of guaranteed hours
• Don't assume you'll "save" during slow periods
• This is the real cost of nanny care

Calculate total annual cost: | Component | Calculation | |-----------|-------------| | Base pay | Hourly rate × guaranteed hours × 52 | | Expected overtime | Estimate additional hours × OT rate × weeks | | Paid holidays | 8-10 days × daily rate | | Paid vacation | 5-10 days × daily rate | | Taxes | ~10-12% of gross wages | | Total annual | Sum of above |

Comparing to Daycare

When calculating cost:

• Include all guaranteed hours
• Add taxes and benefits
• Account for overtime
• Compare to actual daycare costs
• Consider value of flexibility and individual care

Best Practices

For a Positive Relationship

Do:

• Pay consistently and on time
• Honor guaranteed hours without complaint
• Give notice when schedule changes
• Appreciate their commitment
• Treat it as professional employment

Don't:

• Make nanny feel guilty for getting paid
• Expect them to "make up" unused hours
• Nickel and dime the arrangement
• Compare to hourly jobs without guarantees
• Treat guaranteed hours as optional

Communication

Regular check-ins:

• Weekly schedule confirmation
• Advance notice of changes
• Open dialogue about needs
• Annual compensation review

When changes occur:

• Discuss as soon as you know
• Be transparent about reasons
• Work together on solutions
• Document agreements

Documentation

Keep records of:

• Agreed guaranteed hours
• Actual hours worked
• Overtime hours
• Schedule changes
• Any agreements about banking

Legal Considerations

Employment Law

Remember:

• Nannies are household employees (not contractors)
• Wage and hour laws apply
• Overtime laws apply
• You must pay legally required minimum
• Keep accurate time records

Tax Implications

Guaranteed hours affect:

• Total wages for tax purposes
• Social Security and Medicare taxes
• Unemployment insurance
• Workers' compensation

Work with:

• Payroll service (recommended)
• Tax professional
• Nanny tax specialist

Key Takeaways

Guaranteed hours are standard:

• Expected in professional nanny employment
• Not an extra benefit
• Fair compensation for commitment
• Applies regardless of your needs

Understanding the concept:

• Pay for committed hours, not just worked hours
• Your scheduling changes don't affect their pay
• Separate from sick days and vacation
• Overtime still applies

Best practices:

• Clearly define in work agreement
• Budget for full guaranteed hours
• Pay without complaint
• Communicate schedule changes
• Treat as professional employment

Common scenarios:

• Your vacation = pay guaranteed hours
• Their sick day = separate sick day policy
• Your cancellation = pay guaranteed hours
• Extra hours needed = pay for all hours worked

When in doubt:

• Pay the guaranteed hours
• Maintain professional relationship
• Remember they've committed their time to you
• Fair treatment leads to better retention

Guaranteed hours may feel unfair when you're paying for time you don't use. But consider it from your nanny's perspective: they've structured their professional life around your family, turned down other opportunities, and committed to being available when you need them. Guaranteed hours recognize that commitment and create a stable, professional employment relationship that benefits everyone—especially your children, who thrive with consistent, committed caregivers.

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