CNM CNM Legal & Employment Standards for Nannies 2 — Questions and Answers
Question 1: What is a work agreement (nanny contract) and why is it important in nanny employment?
- A written document outlining duties, schedule, compensation, and expectations that protects both parties and prevents disputes (Correct answer)
- A legal requirement filed with the Department of Labor before employment begins
- A temporary document valid only for the probationary period
- A background check authorization form required by state law
Correct answer: A written document outlining duties, schedule, compensation, and expectations that protects both parties and prevents disputes
A clear written work agreement establishes mutual expectations and provides a reference point for resolving disputes throughout the employment relationship.
Question 2: In most US states, if a nanny is terminated without cause after a significant period of employment, best practice is to provide:
- Severance pay and reasonable advance notice as specified in the work agreement (Correct answer)
- No additional compensation since household employment is at-will
- A mandatory 90-day notice period regardless of the work agreement
- Only a written reference letter as termination compensation
Correct answer: Severance pay and reasonable advance notice as specified in the work agreement
While most US employment is at-will, professional nanny standards and work agreements often include severance provisions that should be honored.
Question 3: A nanny discovers she is pregnant. Under the Pregnancy Discrimination Act, her employer:
- Cannot discriminate against her in employment decisions based on her pregnancy (Correct answer)
- Can reduce her hours without compensation to accommodate the employer's preferences
- Can legally require her to take unpaid leave immediately upon disclosure
- Has no legal obligation regarding her pregnancy since it is a private home
Correct answer: Cannot discriminate against her in employment decisions based on her pregnancy
The Pregnancy Discrimination Act prohibits discrimination in employment decisions based on pregnancy for covered employers.
Question 4: What does 'guaranteed hours' mean in a nanny work agreement?
- The family guarantees to pay the nanny for a minimum number of hours per week regardless of whether those hours are actually worked (Correct answer)
- The nanny guarantees availability for a specific number of hours per week
- Hours worked in excess of the standard schedule that are automatically compensated at overtime rate
- A set number of hours beyond which the nanny cannot be asked to work
Correct answer: The family guarantees to pay the nanny for a minimum number of hours per week regardless of whether those hours are actually worked
Guaranteed hours protect the nanny's income stability by ensuring pay for the agreed minimum even when the family needs fewer hours.
Question 5: Household employers in the US are generally required to pay the employer share of which payroll taxes?
- Social Security (6.2%) and Medicare (1.45%) taxes, plus federal unemployment tax (FUTA) (Correct answer)
- Federal income tax only
- State income tax withholding only
- No payroll taxes since household employment is exempt
Correct answer: Social Security (6.2%) and Medicare (1.45%) taxes, plus federal unemployment tax (FUTA)
Household employers must pay the employer share of FICA taxes (Social Security and Medicare) and FUTA once wages exceed the annual threshold.
Question 6: A family asks a nanny to perform duties significantly beyond what was outlined in the original work agreement. The professional approach is to:
- Discuss the additional responsibilities and negotiate updated compensation before agreeing to the expanded role (Correct answer)
- Refuse all additional tasks outside the exact written description
- Perform the extra duties without discussion to maintain goodwill
- Report the request to the agency as a contract violation immediately
Correct answer: Discuss the additional responsibilities and negotiate updated compensation before agreeing to the expanded role
Scope changes warrant compensation renegotiation; a professional CNM addresses this proactively rather than silently accepting or refusing.
CNM CNM Legal & Employment Standards for Nannies 2
What is a work agreement (nanny contract) and why is it important in nanny employment?