Overtime Rules for Nannies, Housekeepers, and Caregivers
Most household employees are entitled to overtime pay — usually 1.5x their regular rate for hours worked beyond 40 in a week under federal law, with some states (California, most notably) also requiring daily overtime after 8 hours in a single day, regardless of the weekly total.
The federal baseline: 40 hours a week
Under the Fair Labor Standards Act, most household employees who don't live in your home are entitled to overtime pay — 1.5x their regular hourly rate — for any hours worked beyond 40 in a single work week. This applies regardless of how you structure their pay (hourly, flat weekly rate, or per-visit).
States with stricter rules
A handful of states go further than the federal rule. California requires overtime after 8 hours in a single day, in addition to the 40-hour weekly rule — so someone working a 10-hour day owes 2 hours of daily overtime even if their week totals under 40 hours.
Check your state's specific rules on our coverage page — this is one of the areas where state rules genuinely differ.
Common overtime mistakes
- Paying a flat weekly salary and assuming it covers unlimited hours — it doesn't; you still owe overtime based on actual hours worked
- Averaging hours across two weeks to avoid crossing 40 in either — overtime is calculated week by week, not averaged
- Not counting "downtime" hours where the employee is present but not actively working, if they're still required to be there and can't leave freely
Live-in employees
Live-in household employees have different overtime rules in many jurisdictions — sometimes exempt from federal overtime requirements, but subject to state-specific rules instead. Don't assume live-in status removes overtime obligations without checking your state.
Frequently asked questions
Does a flat weekly rate avoid overtime?
No. Whatever the pay structure, overtime is calculated from actual hours worked at the equivalent hourly rate.
Does Sadie calculate overtime for me?
Yes — Sadie applies the federal 40-hour rule everywhere, plus California's daily 8-hour rule automatically. You just enter the hours worked.
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Tell us the hours. We'll apply the right overtime rule.
Sadie automatically applies federal weekly overtime everywhere, and California's daily rule where it applies — no manual splitting required.
This guide is general information, not tax or legal advice. Rules vary by state and change over time — confirm anything specific to your situation with a licensed professional or your state's labor department.