For many reasons, families may specify that they want to hire a live-in nanny to help them with their childcare requirements, rather than look for a live-out nanny. One of the questions that we are often asked by clients is whether you can ask your nanny to pay rent to stay at your property, be that in your home or on the grounds of your home or estate. As an expert nanny recruitment agency, find out the true answer to this question and how to make sure you’re in line with industry best practice. We’ll pay particular attention to the legalities of asking your nanny to pay rent in Illinois and Florida, as we primarily hire nannies in Chicago and Palm Beach. Read on to find out more.

Is It Legal to Ask my Nanny to Pay Rent?

If you are starting your search for a nanny, and specify a live-in nanny in your job description, it is understood that room and board will be part of the compensation package. In fact, in these situations, where you specify the requirement for your nanny to live-in, you cannot ask your nanny to pay rent. This holds true under both Illinois and Florida state laws, as well as federal labor laws, which outline clear regulations regarding the compensation and benefits for live-in domestic workers.

In fact, we see more often than not that live-in nannies can command a higher rate of pay because they often take on more responsibilities, and are willing to work unsociable hours to best provide for your family’s unique needs. If you hire a live-out nanny, overnight stays are still possible. In this blog, we discuss how much you should pay your nanny to stay overnight and how you can compensate them.

What’s the law in Chicago regarding asking my nanny to pay rent?

In Illinois, the Domestic Workers’ Bill of Rights ensures that domestic workers, including live-in nannies, are protected against unfair practices. According to this law, live-in nannies must be compensated for all hours worked and provided with appropriate living conditions without additional cost. This means that you cannot deduct any money from your nanny’s salary to cover rental costs. Similarly you cannot ask your nanny to contribute towards any food costs if they are technically at work - i.e. if you’re going for a family meal at a restaurant and request your nanny’s attendance so that they can look after the children, you cannot expect her to pay for her meal as it is your choice to take her along.

Is there a law in Florida stopping me from asking my nanny to pay rent?

While Florida does not have a specific Domestic Workers’ Bill of Rights like Illinois, it follows federal labor laws under the Fair Labor Standards Act (FLSA). The FLSA mandates that live-in domestic workers must be paid for all hours worked and that room and board cannot be deducted from their wages unless explicitly agreed upon and documented, which complicates asking for rent. Therefore, it is highly recommended that you don’t ask your nanny to pay rent if you are expecting them to be a live-in employee.

Why Asking Your Nanny for Rent is a Bad Idea

Industry Best Practices

Imagine you have to go away on a business trip. Your director tells you that you have to stay in a specific hotel because that’s where your conference will be taking place. You also have to pay for the hotel and transport to get there. Would you do it? How would it make you feel as an employee?

Even in states where it might not be explicitly illegal to ask for rent, it is considered bad industry practice to ask your live-in nanny to cover her rental costs. Whilst there are some advantages for a nanny to work in a “live-in” role, in our experience live-in nannies are already providing valuable services, often with flexible hours and responsibilities that go beyond typical working arrangements. The benefits are greater for the employer than the employee and asking your nanny to pay rent undermines their compensation and could even create a hostile work environment.

Professional Boundaries

Maintaining professional boundaries is crucial in an employer-employee relationship, especially when the employee lives in your home. Asking for rent can blur these boundaries and lead to disputes, discomfort, and a breakdown in trust.

Potential Legal Complications of Asking Your Nanny to Pay Rent

If you do ask your nanny to contribute towards rent, there are strict regulations about how much you can charge. It’s essential to check the relevant state laws to ensure compliance. Additionally, you cannot offer free board and lodging in exchange for nannying services. Compensation for work must be monetary and adhere to minimum wage laws. At My Household Managed, we always encourage proper and legal pay for all household employees as there are many benefits for you as an employer, as well as benefits to your employees. You can learn more about the benefits of legal pay for your household employee here.

Creating a Tenancy Agreement

In situations where a nanny does contribute towards rent and lodgings, you are obligated to create a formal tenancy or landlord agreement. This agreement should clearly outline the terms of the tenancy, including the rent amount, duration, and conditions for eviction.

The California Case Study

The complexity of such arrangements was highlighted in a 2014 case in California, where a live-in nanny refused to move out after being fired. The employer had to go through legal eviction processes due to the nature of the setup. This case underscores the potential legal pitfalls of having a live-in nanny who pays rent. If things go sour, the process to resolve the situation can be lengthy and legally complicated. You can read more about this case here.

In conclusion, asking your nanny to pay rent, especially if you specified a live-in arrangement in your job search, is not only against the law in many states but also a poor industry practice. Ensuring fair compensation, maintaining professional boundaries, and avoiding legal complications should be your priority. If you find yourself considering such an arrangement, it is best to consult with legal professionals to ensure compliance with state and federal laws.

For those in Illinois and Florida, remember that the laws are designed to protect both you and your employee, fostering a respectful and professional working relationship. Always strive for transparency, fairness, and adherence to legal standards in your household employment practices.

By following these guidelines, you can create a positive and supportive environment for your nanny, ensuring that they can provide the best care for your family without the added stress of unfair financial demands

Are you looking to hire a live-in nanny in Chicago or Palm Beach?

At My Household Managed, we offer a personalized and consultative approach to household staff recruitment.

We work closely with clients to help you hire domestic staff qualified to fit your unique needs, saving you time and providing peace of mind with our extensive screening process.

Let us help you find the best live-in nanny, family assistant or other domestic employee that you may be searching for by registering with My Household Managed.