This article comes from our friends at Breedlove & Associates
HOW 
TO HANDLE A NANNY'S PAYROLL WHEN SHE TRAVELS WITH THE FAMILY
The summer months are right 
around the corner and many families are already planning their vacation 
schedule. For those who take their nanny along to watch the kids, this edition 
of The Legal Review addresses a common labor law mistake.
The Situation 
The 
Kellogg family hired a nanny through a local placement agency to care for their 
three sons. The family needed someone who would be able to travel with them for 
at least two vacations during the summer. The agency was able to set the 
Kelloggs up with an ideal nanny who was eager to accept the position, in part 
because she had never been out of the state before and liked the idea of 
traveling to new places. The agency also recommended the family call Breedlove 
& Associates because traveling with a nanny can be tricky for families 
unfamiliar with labor law. The Kelloggs politely declined as Mr. Kellogg had 
worked in financial services his whole life and felt comfortable handling the 
nanny's payroll and taxes. 
The Mistake
The first 
family vacation was a week-long trip to Disney World. The nanny was excited to 
go and assumed she would have some free time of her own. To her surprise, she 
worked much more than normal - instead of her normal 40 hour workweek, she 
worked 60 hours in Orlando. However, she didn't complain because most of her 
days were spent riding rides and playing games with the kids.
Upon 
returning from the trip, the nanny was exhausted. When she received her 
paycheck, she was surprised to find it was $300 less than her normal pay. When 
she read over her paystub, she noticed a $300 deduction for airfare. The nanny 
did not think this was correct, but before bringing it to Mr. Kellogg's 
attention, she contacted her placement agency who referred her to Breedlove 
& Associates.
The Law
When 
accompanying an employer on a trip - whether a vacation or a business trip - an 
employee must be compensated for all hours worked during the trip, including the 
time spent traveling to the destination. If the employee's working time exceeds 
40 hours in a 7-day period, the employer must pay the employee for the overtime 
hours at the time-and-a-half rate. In addition to the regular and overtime pay, 
the employer is responsible for the employee's traveling expenses, including 
airfare and hotel accommodations. These expenses are covered by the employer 
because the employee would not have incurred these expenses on her 
own.
A traveling 
employee does not need to be compensated during her "free time," which is 
defined as time when she is not responsible for her charges and she has complete 
freedom to go and do whatever she pleases.
The Mess
A Breedlove 
& Associates consultant explained to the nanny that Mr. Kellogg had not 
handled her compensation for the trip correctly, but that this was a common 
mistake for new household employers. The consultant informed the nanny that she 
should have been paid for all hours worked and that Mr. Kellogg should not have 
deducted the expense of the flight from her paycheck.
The nanny 
presented this information to the Kelloggs and they were surprised and 
embarrassed to find out they had underpaid her. They apologized and explained to 
the nanny that it was never their intention to swindle her out of any additional 
money owed to her. Mr. Kellogg prided himself on paying the nanny "on the 
books," but admitted he was not an expert in employment law.
The Outcome
Mr. Kellogg 
contacted Breedlove & Associates on the advice of the nanny to 
figure out how much he needed to pay her. We helped him calculate the additional 
compensation owed to the nanny for the trip and explained more about household 
labor law so he would be prepared for the next family vacation. The Kelloggs 
made a catch-up payment to the nanny right away and ultimately decided to sign 
up for our service so they would never risk making a similar mistake 
again.
How the Whole Thing Could Have Been 
Avoided
If the Kelloggs had called Breedlove & Associates 
from the beginning - as their agency recommended - we could have helped save 
them the embarrassment of underpaying their nanny. Luckily the employment 
relationship between the Kelloggs and their nanny did not suffer from this 
incident, but their situation illustrates how easy it is to make a mistake with 
payroll or labor law.
888-BREEDLOVE 
(888-273-3356)

 
 
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