All about the Nanny Contract

The nanny contract

Hiring a full or part time nanny is a huge step for a family and goes hand-in-hand with some complicated issues. Dealing with these issues, especially for the first time, can seem like just as much work as finding the right nanny. Once a great nanny candidate is found, the question of a nanny contract or formal employment agreement comes into play. Should you have one? Some people do and some don't. Here are the key reasons why you do want a well-written nanny contract:

• A contract sets the expectations of the nanny job and provides a built-in mechanism for discussion should an issue arise. Your contract allows you and your nanny to be on the same page.

• A well-written contract protects you from a legal standpoint as it will ensure that you will be in compliance with current employment law with regard to payment of wages, taxes, and worker's compensation insurance.

• A contract can help you retain quality service from your nanny for a longer time. It helps reduce conflict and increases the long term health of the relationship. Your nanny will know that you value her professional skills and experience.

What goes into a nanny contract?

Your nanny contract should have 4 major sections to address the following items:

• Duties and responsibilities
  • work hours (live-in, live-out, full or part time, weekend, weekday)
  • responsibilities (child care, cleaning, laundry, cooking, transportation)
  • nanny privileges (phone, internet, guests)

• Compensation and benefits
  • hourly rate of pay
  • frequency of pay (weekly, bi-weekly)
  • benefits (vacation, sick days, paid holidays)
  • family vacation requirements (Must nanny travel with you?)

• Transportation
  • Nanny's car
    • must have valid driver's license
    • require regular maintenance of reliable car
    • require appropriate type and amount of insurance
  • Family's car
    • add nanny to household insurance policy
    • outline acceptable use of family car for work
    • outline acceptable use of family care for nanny's personal use
    • regular maintenance of car
    • pay all car-related expenses

• Discretion and confidentiality
  • personal, medical, career, and financial information of family will not be discussed outside of the family
  • nanny will not disparage family in any media
  • require signature

Nanny contract and federal hiring standards

There is 1 government document you should read to familiarize yourself with the federal rules and regulations that govern employment standards. The Fair Labor Standards Act contains information you need to know about hiring an employee. This means you, as the employer, are obliged to comply with federal standards for fair employment. While your nanny contract does not need to include passages from the FLSA, you should be aware of rules and regulations as you determine her work hours, wages and other details of employment.

• Fair Labor Standards Act

The FLSA covers all aspects of employment, from minimum wage to overtime pay to recordkeeping. You can browse through and read the information that applies to you. The website has links to general guidance as well as Q&A about the FLSA to help you through the document.

Legal impact of a nanny contract

Your nanny contract is a legally binding document, which can be enforced in a court of law. This protects both you and your nanny if there is a breach of contract by either party. The contract is not meant to be a scare tactic, rather it merely lays the foundation for taking legal action should the need arise. For example, it can outline the process by which you or your nanny will make a complaint-verbal warning, warning letter, and then legal action. This doesn't mean you can't change or amend the contract. Changing the contract can typically take place by way of mutual written consent between the family and the nanny. The contract provides both you and your nanny with the agreed upon process of making a needed change.

Where to find a nanny contract

Writing a nanny contract isn't something you should try to do without experience. One of the best ways to guarantee your nanny contract is both thorough and current on all federal employment standards such as the FLSA, is to hire a legal professional specializing in contracts. While the price range will vary, using a professional can give you peace of mind. Other nanny contract templates and advice can be found online, but they can vary widely in quality and price. While you may even find some for free, be aware that they are not guaranteed to provide you with the customized details you need for your specific child care agreement.

Going without a contract

Some people feel as though a contract is too formal for their needs-they may have a family member as their nanny, or feel as though their need for a nanny will be short-lived. But, even family-member or casual agreements need to have some structure to help you avoid the major problems should your caregiver quit or provide work not up to your standards. Just remember that if the terms of the agreement are casual, your caregiver may treat the job or relationship casually too. If you want more accountability for both you and your nanny, use a contract.

And, beware, your choice of great, qualified nannies may be significantly reduced if you don't use a contract--many professional nannies won't even consider working for you without one.