A. You can do either.  That said, it is important to remember that, regardless of your choice, you must comply with state and federal minimum wage and overtime laws.

Nannies qualify for the protections of the Fair Labor Standards Act (FLSA), so your nanny’s wage must comply with both state and federal minimum wage and overtime requirements. Let’s take these one at a time:

State minimum wage and overtime requirements: The U.S. Department of Labor (DOL) has an interactive map describing the minimum wage and overtime requirements of the different states as of January 1, 2011.  You can view the map by clicking here.  For further information about your state’s requirements please contact your state’s wage and hour division.  The DOL provides a list of contact information (current through January 7, 2011)– to view the information please click here.

Federal minimum wage and overtime requirements: To ensure that you are complying with federal minimum wage and overtime requirements you should visit the DOL’s website.  To read introductory material about minimum wage requirements please click here.  To read introductory material about overtime regulations please click here or visit our brief explanation to FAQs “Should my nanny contract address overtime?”