Nanny Contract Template: What to Include & Free Guide

A written nanny contract is the single most important document in your employer-nanny relationship. It sets clear expectations for both sides, prevents misunderstandings about pay and duties, and provides legal protection if things go south. Yet many families skip it entirely or rely on a verbal handshake that leaves critical details unresolved.

Whether you are hiring your first nanny or renegotiating terms with a long-time caregiver, this guide covers every clause you should include, why it matters, and how to tailor the contract to your state's legal requirements.

Why You Need a Written Nanny Contract

A verbal agreement is technically enforceable, but proving its terms in a dispute is nearly impossible. A written contract protects you in three specific ways:

1. Prevents payroll disputes. When pay rate, overtime rules, and deductions are documented, there is no ambiguity about what your nanny should earn each pay period.
2. Establishes legal compliance. Many states require written notice of wage rates and pay schedules. In New York, for example, employers must provide a written wage notice within the first week of employment under the Wage Theft Prevention Act.
3. Creates a reference point. When duties shift, schedules change, or performance issues arise, you have a baseline to refer back to during conversations.

Essential Nanny Contract Sections

1. Parties and Start Date

Identify the employer (you), the employee (your nanny), and the employment start date. If there is a probationary period (commonly 30 to 90 days), state its length and any conditions that apply during that time, such as reduced PTO accrual or at-will termination.

2. Job Duties and Responsibilities

Be specific. List the primary duties (childcare, meal preparation for children, school pickup and dropoff, homework help) and any secondary duties (light housekeeping, children's laundry, organizing play areas). Clearly state what is not included. If you do not expect your nanny to do general household cleaning, say so. Vague job descriptions lead to scope creep and resentment.

3. Work Schedule

Document the standard weekly schedule, including start and end times for each day. Specify how you handle schedule changes, including how much notice is required for modifications and whether extra hours are optional or expected. If your nanny is live-in, define on-duty and off-duty hours explicitly.

4. Compensation

State the gross hourly rate or weekly salary, the pay frequency (weekly, biweekly), and the payment method (direct deposit, check). If you are paying on the books — and you should be, as outlined in our nanny tax guide — note that taxes will be withheld from each paycheck. Include a breakdown of deductions so your nanny knows exactly what to expect on their pay stub.

5. Overtime Policy

Federal law requires overtime pay at 1.5x the regular rate for hours over 40 per week. Your state may have additional requirements. California mandates overtime after 9 hours in a day for domestic workers. Include the overtime rules that apply in your state and confirm that any hours beyond the standard schedule will be compensated accordingly.

6. Guaranteed Hours

Guaranteed hours mean your nanny gets paid for the agreed-upon schedule even if you need fewer hours that week — for instance, if you take a family vacation or come home early. This is an industry standard that protects your nanny's income stability. If you do not offer guaranteed hours, state that clearly so there are no surprises.

7. Paid Time Off (PTO)

Specify the number of paid vacation days, personal days, and holidays your nanny receives each year. The industry standard is 5 to 10 paid vacation days, 2 to 3 personal days, and 6 to 10 paid holidays. Define whether PTO accrues over time or is available from the start of employment, and whether unused days carry over or are forfeited. For a full breakdown, see our guide to nanny benefits packages.

8. Sick Leave

Many states and cities mandate paid sick leave for household employees. Even if your state does not, providing paid sick days is standard practice and reduces the risk of your nanny coming to work ill. Common allocations are 5 to 7 paid sick days per year. Specify any documentation requirements, such as a doctor's note for absences longer than three consecutive days.

9. Benefits

If you offer additional benefits — health insurance stipend, transit reimbursement, professional development funds, or year-end bonus — document the terms. Be specific about amounts, eligibility, and conditions.

10. Confidentiality and Privacy

Your nanny will have intimate access to your home, your children, and your personal life. A confidentiality clause protects your family's privacy by prohibiting your nanny from sharing personal information, photos of your children, home details, or family matters with third parties or on social media.

11. Termination and Severance

Define the terms for ending the employment relationship, including the required notice period (two weeks is standard) and any severance arrangements. Specify what constitutes immediate termination without notice (e.g., theft, child endangerment, substance abuse). State whether either party can terminate without cause during a probationary period.

12. Dispute Resolution

Include a process for resolving disagreements before they escalate. This might involve a written complaint process, a commitment to discuss issues within a specific timeframe, or mediation through a third party. A dispute resolution clause signals that both sides are committed to handling problems professionally.

State-Specific Requirements

Several states impose additional requirements on household employers that should be reflected in your contract:

Tips for Presenting the Contract

1. Introduce it early. Present the contract during the offer stage, not on the first day of work. This gives your nanny time to review and ask questions.
2. Frame it as mutual protection. A contract is not a sign of distrust. It protects the nanny just as much as it protects you.
3. Be open to negotiation. Your nanny may request changes to PTO, duties, or scheduling. Treat it like any professional employment negotiation.
4. Review annually. Revisit the contract at least once a year, especially around performance reviews and raise discussions, to update terms that have changed.

A contract that sits in a drawer and never gets referenced is almost as useless as no contract at all. Use it as a living document that guides your working relationship throughout the year.