Does a live-in nanny get overtime?
Updated November 6, 2026 · For 2026 · General information, not tax or legal advice
The federal rule is simple and widely misunderstood: a live-in nanny must be paid at least minimum wage for every hour worked, but is exempt from federal overtime. Live-out nannies get time-and-a-half after 40 hours in a workweek. State law often overrides this.
States that require live-in overtime
California (after 9 hours a day or 45 a week for personal attendants), New York (after 44 hours a week), Oregon (after 44), Minnesota (after 48), and Massachusetts, Maryland, Illinois, Colorado, Hawaii and the District of Columbia (after 40). Check your state guide before setting the rate; the overtime section states the live-in rule for your state.
Hours worked
Everything on duty counts: the hours the children are awake, driving them, waiting at activities, and any time the nanny is required to be available. Genuine off-duty time, when the nanny can leave and do as they please, is not paid even if they stay in the house.
For a nanny who lives in and is on duty around the clock, you can agree in writing to exclude a sleep period of up to 8 hours per night, and bona fide meal breaks, as long as the nanny gets at least five hours of uninterrupted sleep. A night with a sick toddler is paid time.
Room and board
Federal law lets you credit the "reasonable cost" of lodging and meals toward minimum wage, not toward overtime where it applies, if the nanny accepts them voluntarily and you keep records of the actual cost. Many states cap or forbid the credit. Most families skip it, pay full cash wages and treat the room as a benefit; it is simpler and avoids a dispute later.
Taxes
Live-in status changes nothing about taxes. Cash wages over $3,000 are subject to Social Security and Medicare, unemployment tax applies, and a W-2 is due. Lodging and meals furnished in your home for your convenience are not taxable wages.
Paying a live-in by salary
A weekly salary is fine as long as it still covers minimum wage for all hours and, in states with live-in overtime, the overtime premium. Write the expected hours into the agreement and track actual hours so the salary can be checked. See salary versus hourly. CareTab tracks hours against a salary and flags any week that falls below the legal floor.
Frequently asked
Is a live-in nanny exempt from overtime?
Under federal law, yes: live-in domestic workers must get at least minimum wage for all hours worked but not time-and-a-half. States such as California, New York, Massachusetts, Maryland, Minnesota, Illinois, Colorado, Oregon, Hawaii and the District of Columbia require overtime for live-ins at various thresholds.
Does room and board count as wages?
You can credit the reasonable cost of lodging and meals toward minimum wage if the nanny accepts them voluntarily and you keep records, within state limits. Many states restrict or prohibit the credit.
Are sleep hours paid?
For a live-in on duty 24 hours, you can agree in writing to exclude up to 8 hours of sleep time if the nanny gets at least 5 uninterrupted hours. Interrupted sleep is paid.
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