Nanny Contract Template: What to Include (2026)

A written nanny contract protects both your family and your nanny by documenting expectations, pay, duties, and policies. Here's everything your contract should cover — plus common mistakes to avoid.

Why You Need a Nanny Contract

Even if your state doesn't mandate a written agreement, a nanny contract:

  • Prevents misunderstandings about schedule, duties, and compensation
  • Documents overtime expectations and pay calculations
  • Establishes clear policies for sick days, vacation, and holidays
  • Protects both parties if the relationship ends unexpectedly
  • May be required by your state's Domestic Workers Bill of Rights
  • Helps with tax documentation and payroll setup

Essential Contract Sections

1. Employment basics

  • Start date and trial/probationary period (typically 2–4 weeks)
  • Names and addresses of both parties
  • Employment type: full-time, part-time, or temporary
  • Whether the position is live-in or live-out

2. Schedule & hours

  • Regular weekly schedule (days and times)
  • Guaranteed minimum hours per week
  • Flexibility expectations (occasional early/late requests)
  • Overtime policy: how it's requested, approved, and compensated
  • On-call or overnight expectations (if applicable)

3. Compensation

Component Typical Standard Notes
Base pay$18–$35/hrVaries by city; must meet local minimum wage
Overtime1.5x hourly rateRequired over 40 hrs/week (some states: over 8 hrs/day)
Guaranteed hours40 hrs/weekNanny is paid even if family needs fewer hours
Pay frequencyBi-weekly or weeklyMust comply with state pay frequency laws
Annual raise3–5% per yearOften reviewed at anniversary or year-end

4. Paid time off (PTO)

Benefit Industry Standard
Paid vacation10 days/year (2 weeks)
Paid sick days5–7 days/year
Paid holidays3–6 days/year
Personal days1–3 days/year

Note: Many states and cities now mandate paid sick leave for all employees, including household workers. Check your local requirements.

5. Job duties & responsibilities

Be specific about what is and isn't part of the job:

  • Core childcare duties: Feeding, diapering, naps, activities, school pickup/dropoff, bathing
  • Child-related housekeeping: Children's laundry, tidying play areas, washing bottles/dishes
  • Additional duties (if agreed): Light family housekeeping, pet care, errands, meal prep
  • Driving: Whether nanny will drive children, mileage reimbursement rate, car seat requirements
  • Explicitly excluded: List tasks that are NOT part of the role to prevent scope creep

6. House rules & expectations

  • Screen time policies
  • Discipline approach
  • Food and allergy guidelines
  • Visitor policy (friends/family visiting during work)
  • Phone/social media use during work hours
  • Confidentiality expectations

7. Benefits (optional but common)

  • Health insurance contribution ($100–$300/month common)
  • Mileage reimbursement (IRS rate: $0.67/mile in 2026)
  • Professional development (CPR certification, courses)
  • Year-end bonus (typically 1–2 weeks' pay)
  • Cell phone stipend (if using personal phone for work)

8. Termination & severance

  • Notice period: 2–4 weeks from either party (industry standard)
  • Immediate termination grounds: Safety violations, substance use, no-show without notice
  • Severance: 1–2 weeks' pay if terminated without cause (common but not required)
  • Final paycheck: State law dictates timing (often same day or within 72 hours)

Common Contract Mistakes to Avoid

  1. Classifying as independent contractor. Nannies are W-2 employees, not 1099 contractors. Misclassification exposes you to IRS penalties and back taxes. See our nanny taxes guide.
  2. No overtime clause. Nannies must be paid 1.5x for hours over 40/week (federal law). Document how overtime is tracked and approved.
  3. Vague duties. "Light housekeeping" means different things to different people. Be specific or you'll face resentment and scope creep.
  4. No guaranteed hours. If you cancel a day, you still owe pay for guaranteed hours. This protects the nanny's income stability.
  5. Forgetting state-specific requirements. Some states require written notice of pay rates, paid sick leave, or specific termination procedures. Check your state's labor department.

Nanny Contract Checklist

Use this checklist to ensure your contract is complete:

  • Start date and trial period defined
  • Weekly schedule with specific days and times
  • Hourly rate and pay frequency documented
  • Overtime rate and tracking method specified
  • Guaranteed hours policy stated
  • Paid vacation, sick days, and holidays listed
  • Job duties explicitly listed (and exclusions noted)
  • House rules documented
  • Termination notice period and grounds defined
  • Benefits and reimbursements listed
  • Confidentiality clause included
  • Both parties have signed and received copies

Frequently Asked Questions

Do I legally need a nanny contract?

While most states don't legally require a written contract for household employees, having one is strongly recommended — and some jurisdictions now mandate written notice of pay rates and schedules. A contract protects both parties by clearly documenting expectations, prevents misunderstandings about duties and compensation, and provides evidence if disputes arise. The Domestic Workers Bill of Rights (enacted in several states) requires written agreements covering hours, duties, and pay.

How much PTO should a nanny get?

Industry standard for full-time nannies is 2 weeks (10 days) paid vacation per year, plus 5–7 paid sick days, and 3–6 paid holidays. Many families offer additional holidays matching their own schedule (e.g., the week between Christmas and New Year's). After 2+ years, some families increase vacation to 3 weeks. Part-time nannies typically receive prorated PTO based on their regular hours.

Should a nanny be paid hourly or salary?

Legally, nannies are non-exempt hourly employees under the Fair Labor Standards Act (FLSA) and must be paid at least minimum wage for all hours worked, plus overtime (1.5x) for hours over 40/week in most states. While some families use a "guaranteed hours" arrangement (a set weekly payment based on expected hours), this must still translate to at least minimum wage per hour and account for overtime. True salaried/exempt status does not apply to household employees.

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