In the past few months, two new laws have passed that may affect the way you work with your household staff. We’ve included information below to ensure you are paying and monitoring your team correctly. While BAHS is here to assist with staffing questions, we do recommend you review any and all legal documents and changes to employee management with your lawyer.
New Tax Reporting Rule
As of 2022, paying for goods and services through third-party settlement organizations (such as Venmo, PayPal, and CashApp) will be reported to the IRS if those transactions total $600 or more in a year. GTM, our payroll partner, suggests that “families that employ household help – like nannies, in-home senior caregivers, and housekeepers – should avoid using mobile payment platforms to pay their workers” and suggests direct deposit or paper checks instead. While you may consider paying a very occasional sitter with Venmo, any consistent full-time or part-time employee should be paid via a more traditional route. Read more.
New York Employers Must Disclose Monitoring to Employees
As of May 7, employers in NYC must disclose to employees if and how phone, email, and/or internet usage are being monitored. We recommend including this information with employee onboarding materials or in the employee manual. As of now, this does not apply to nanny cams or similar visual recording in your home – remember, of course, cameras should not be placed in bathrooms or in the private accommodations of a live-in employee.
Wage & Schedule Basics Each state has different rules regarding schedules, overtime, and wages. Take the time to familiarize yourself with the laws in your area – California, Connecticut, Hawaii, Illinois, Massachusetts, Nevada, New Mexico, New York, Oregon, Philadelphia, and Seattle all have specifically passed domestic workers’ bills of rights and other employee protection. We’ve copied New York’s below and the rest are available here.
New York’s Domestic Workers’ Bill of Rights covers full-time workers including immigrants regardless of their immigration status. Relatives and part-time workers like baby sitters aren’t included.
Under the law, household employees must receive:
- An hourly pay rate of at least minimum wage
- Overtime pay of at least time-and-a-half for hours worked over 40 in a week (44 hours for live-in employees)
- At least three paid days off after one year of employment with the same employer
- At least one day of rest per week. Employees can agree to work on their day of rest at an overtime pay rate. Employers are encouraged to coincide the rest day with the employee’s day of worship (if they have one)
- Written notice on work policies including sick leave, vacation, personal leave, holidays, hours of work, pay rate, overtime rate, and payday
Information above from our partner, GTM Payroll Services.
GTM’s Nanny Tax Calculator for Household Employers
GTM’s Complete Guide to Household Payroll
GTM: Responsibilities for New York Household Employers
GTM: Responsibilities for California Household Employers
Sample Summary of Expectations
Sample Confidentiality Agreement