.png)
Why “Banking Hours” Is a Big Mistake in Nanny Pay
- Ruth Regan
- Sep 30
- 3 min read
Hiring a nanny comes with responsibilities — not just in finding the right caregiver, but also in paying them correctly. One of the most common mistakes families make is something called “banking hours.”
At first glance, it might seem harmless. A nanny works extra one week, fewer hours the next, and everything “balances out.” But in reality, this practice is not legal, not fair, and not sustainable.
What Does “Banking Hours” Mean?
Banking hours is when a family says:
“You worked extra this week, so just work less next week and it will even out.”
Example:
Week 1 → Your nanny works 50 hours.
Week 2 → Your nanny works 30 hours.
The family says, “That’s 70 total across two weeks, no overtime needed.”
Sounds simple, right? Unfortunately, it’s not how labor laws work.
Why Banking Hours Is a Problem
1. It’s Illegal
Overtime is calculated weekly, not biweekly. Any hours worked over 40 in a single week must be paid at an overtime rate — even if the following week is lighter.
2. It Undervalues the Nanny’s Work
When a nanny works 50 hours in one week, she’s giving up her time, energy, and personal schedule in the moment. Waiting until the next week to “make it up” does not compensate her fairly.
3. It Damages Trust
Nannies notice when they aren’t paid properly. Over time, unpaid overtime creates frustration, resentment, and can ultimately cause a great nanny to quit.
The Right Way to Handle Overtime
Pay overtime weekly, as required by law.
Clearly outline hours and pay in the nanny contract.
If your schedule fluctuates, discuss it upfront and offer a guaranteed minimum number of hours.
Respect your nanny’s time — and they’ll respect your family in return.
Key Takeaway:
Banking hours might seem convenient for families, but it’s one of the biggest mistakes you can make in nanny pay. By paying overtime correctly each week, you stay compliant, keep your nanny happy, and protect the trust that makes a nanny-family relationship thrive.
Clear pay = strong relationships = happy kids
WANT TO HANDLE THE SEARCH YOURSELF?
Not every family chooses to work directly with an agency — and that’s why we created the Confident Nanny Hiring: The Complete Parent’s Guide Bundle.
Our DIY Nanny Hiring Guides walk you step by step through the same process agencies use, including:
Background check recommendations
Interview question toolkits
Red flag checklists
Contract guidance
Onboarding tips
So whether you choose to partner with an agency or DIY your search, you’ll have the tools and confidence to make the right hire.
📖 Explore the guides today and take charge of your nanny search with clarity and confidence.
WHAT'S INSIDE THE BUNDLE?
Guide 1: A 10-Step Guide to Hiring Your Dream Nanny
A complete roadmap that walks you from “Where do I start?” to “We found our nanny!” with confidence, clarity, and ease.
Guide 2: The Nanny–Family Handbook Template
A ready-to-customize handbook that covers your household values, communication norms, rules, and expectations—keeping everyone on the same page.
Guide 3: The Family Guide to Legal Nanny Hiring
Demystifies payroll, taxes, workers’ compensation, and insurance. Includes referrals and resources so you can stay compliant, avoid penalties, and protect both your family and your nanny. Includes a real “story time” case where workers’ comp saved a family from major financial loss.
Guide 4: Drafting Job Descriptions, Interviews & Trials
Step-by-step guidance for writing clear job ads, conducting interviews with confidence, and running structured trial days that set everyone up for success.
Guide 5: Nanny Pay, Raises & Incentives
Understand industry standards for pay, overtime, and bonuses. Learn creative incentive strategies that keep your nanny motivated, happy, and long-term committed.
Guide 6: The Complete Nanny–Family Work Agreement
Covers everything from hours to holidays, overtime to house rules. Includes a fillable template so you and your nanny start with clarity and mutual accountability.
Guide 7: The Nanny Hiring Toolkit
Your all-in-one toolkit with customizable job description templates, proven interview questions, red flag checklists, and evaluation scorecards—so you can simplify the hiring process and make smart, informed decisions.
Guide 8: Evaluating Fit, Navigating Challenges, and Planning for Longevity
Learn how to assess the right nanny for your family, anticipate common challenges before they become problems, and create a relationship built to last.
THE ULTIMATE NANNY & BABYSITTER INTERVIEW TOOLKIT
Not sure where to start? We’ve also created a Free Nanny Interview Toolkit to help parents kick off the hiring process with clarity. Inside, you’ll find:
Must-ask questions to reveal a nanny’s true experience
Red flags to listen for during interviews
Tips for comparing candidates fairly and confidently
This toolkit is designed to help you make smarter decisions from the very first conversation with a potential nanny.
📖 Download your free toolkit today and take the first step toward a smoother, safer hiring process.
Comments