Regulatory Compliance & Legal Framework Flashcards

A nanny work agreement includes a non-compete clause preventing her from working as a nanny within 50 miles for 2 years after leaving. How do courts typically view such clauses for household employees?

Answer: Often unenforceable or narrowly construed because they restrict a worker's livelihood

Courts generally scrutinize non-compete clauses for household workers skeptically, often finding them unenforceable if overly broad in geography, duration, or scope.

Under federal law, when must a new household employer obtain an Employer Identification Number (EIN) from the IRS?

Answer: Before filing the first payroll tax return or issuing a W-2

Any household employer who must file payroll taxes or issue a W-2 must obtain an EIN from the IRS before submitting the required tax filings.

A nanny is offered 'room and board' as partial payment of her wages. Under the FLSA, how must the value of room and board be treated for minimum wage calculation purposes?

Answer: It may be counted as a wage credit at a reasonable cost value, subject to FLSA limits

The FLSA permits employers to count the reasonable cost of furnished room and board as a partial wage credit, but cash wages plus the credit must still meet minimum wage requirements.

A family wishes to terminate their nanny's employment immediately without cause. In a state that follows 'at-will' employment doctrine, which statement is most accurate?

Answer: Either party may end employment at any time for any legal reason unless a contract specifies otherwise

At-will employment allows either the employer or employee to end the relationship at any time for any lawful reason, unless a contract establishes different termination terms.

A nanny's employer asks her to sign a document waiving her right to overtime pay in exchange for a bonus. Is this waiver legally valid under the FLSA?

Answer: No, FLSA rights cannot be waived by private agreement

FLSA minimum wage and overtime rights are statutory protections that cannot be waived through private agreements between employers and employees.

A nanny is employed through a nanny placement agency. Which party is typically considered the legal employer responsible for payroll taxes and labor law compliance?

Answer: The family who directly supervises and pays the nanny on a regular basis

In most arrangements, the family that directs the nanny's work, controls her schedule, and pays her wages is considered the legal employer responsible for tax and labor compliance.

Which document, required by several states' Domestic Worker Bills of Rights, must employers provide nannies at the start of employment detailing wage rate, pay frequency, and employer information?

Answer: Wage Theft Prevention Act notice or written wage notice

Many states with Wage Theft Prevention Acts require employers to provide a written wage notice at hire disclosing pay rate, pay day, overtime rate, and employer contact information.