A nanny contract is more than a formality. It establishes the framework for a successful, professional working relationship and should be detailed, thoughtful, and unique to your family, your needs, and the role you’re looking to fill.
It doesn’t have to be full of legalese or overly formal. In fact, most nannies prefer neither. At its best, a nanny-family contract is a clear, practical agreement that outlines the important employment details and creates role clarity. But seasoned household employers go one step further. They use their nanny contract as a tool to protect both parties by clarifying compensation, responsibilities, benefits, and expectations around driving, communication, safety, privacy, and more
Based on thousands of successful full-time nanny placements, here are the key items – beyond the basics – that every family should include in their nanny contract:
1. Schedule, Guaranteed Hours, and Flexibility
Your nanny contract should clearly outline the nanny’s regular work schedule, total weekly hours, and any additional scheduling expectations, such as travel with the family, school closures, date nights, and weekends (if needed). As the employer, you should also be clear about what falls within the regular work schedule and what will be paid separately outside the normal workweek, such as date nights, travel, or overnights.
It’s also standard to include the nanny’s guaranteed hours. Guaranteed hours are the agreed-upon number of hours each week that you will pay your nanny, even if your family does not need them. For example, if grandma comes to town and you choose not to use care on a standard workday, your nanny should still be paid for the hours you agreed to guarantee in your contract (typically the same as the standard weekly hours).
2. Pay, Overtime, and Legal Payroll
Your nanny contract must clearly outline how your nanny will be paid, including their gross hourly rate, overtime rate, pay schedule, and payroll process.
As a reminder, nannies are classified as non-exempt employees under the Fair Labor Standards Act (FLSA). The law requires that they be paid hourly, rather than a flat weekly salary (different than guaranteed hours). Additionally, for a live-out position, nannies are eligible for overtime after 40 hours in a workweek, and they must be paid at 1.5x their regular hourly rate.
The contract should also make clear that your nanny will be paid legally (gross vs. net) as a household employee, with proper payroll and a W-2, rather than as an independent contractor.
3. Duties and Expectations
All pieces of the nanny-family contract are important, but the section outlining duties and expectations is especially important. This section should outline the nanny’s core childcare responsibilities, such as the children’s meals and bottles, child-related housekeeping and laundry, daily/weekly activities and driving responsibilities, homework support, and more.
If you need support beyond childcare, such as errands or returns, family meal prep or grocery shopping, pet care, or organizational projects – which are typical in a Family Assistant role – they should also be clearly listed. As the employer, before presenting the contract to your nanny, ensure the duties are realistic, can be done in the time allotted, and are commensurate with the position as well as the rate of pay. Being clear from the beginning helps ensure the role is manageable, clearly understood, and set up for success.
4. Paid Time Off, Holidays, Sick Leave, & Health Insurance
Your nanny contract should clearly outline the nanny’s paid time off, paid holidays (be specific on which ones), and paid sick leave. This should include how much paid time is offered and how it may be used. Further, address whether PTO is accrued over time (and at what rate) or provided upfront, whether it can be used at the nanny’s discretion or should be coordinated with the family’s vacation schedule.
It’s also imperative that your paid sick leave policy complies with applicable federal, state, and local laws. For example, in Colorado, under the Colorado Healthy Families and Workplaces Act, employers must provide at least 1 hour of paid sick leave for every 30 hours worked, up to 48 hours per year.
Last but not least, if you are planning on offering or adding a health insurance stipend for your nanny initially or down the road, be sure it’s clearly outlined in your contract. A standard stipend is usually an agreed-upon flat amount added to the nanny’s payroll. In recent years, we’ve seen a range from $150-$500 per month in Colorado.
5. Driving and Reimbursement
If your nanny will drive as part of the role, your contract should explain whether they will use their own car or a family vehicle, what driving is permitted, who installs the car seats, and how mileage will be reimbursed for work-related driving. As of 2026, the federal rate of reimbursement is 72.5 cents per mile driven.
The agreement should also clarify how your nanny will be reimbursed for child-related expenses and activities, parking, supplies, errands, and more. Will your nanny be paid, and you will reimburse at the end of each day or pay period? Or, will you provide a low-limit debit or credit card for your nanny’s use? Both are fine, but it’s important to clarify this in your nanny-family contract.
6. Communication, Reviews, and Changes to the Role
A strong contract should include how your family and nanny will communicate day to day, whether that is through texts, a shared app, an end-of-day stand-up meeting, or regularly scheduled check-ins on a weekly, monthly, or quarterly basis.
Additionally, your contract should include a plan for reviews, such as a 30-day check-in, an annual performance and salary review. Check-ins and reviews give both the nanny and the family a designated time to discuss what’s working, what’s not working, and whether the responsibilities, schedule, or expectations should be adjusted.
For more information on healthy communication with your nanny, check out our blog: What Parents Need to Know About Nanny – Family Communication
7. Confidentiality and Technology
Employing a nanny is a more intimate relationship than most. Because a nanny works in your home and has a front row seat to your private life, your contract should include confidentiality expectations. Families should also be clear on whether their nanny may post photos, videos, or any identifying information about the children online.
If your home has nanny cams, doorbell cameras, or other monitoring tools, it’s important to disclose those in your contract and handled according to applicable state law. It is also helpful to include reasonable expectations around the nanny’s personal cell phone use during work hours.
8. Safety Expectations and Ending the Relationship
Last but not least, your nanny-family contract should include safety and emergency information specific to your family. This should include emergency contacts and your pediatrician’s information, allergies, and medications, as well as when you want the nanny to provide emergency medical care if parents or emergency contacts cannot be reached.
Families should also include any non-negotiable safety rules, such as safe sleep practices, water safety expectations, discipline styles, and your family’s policy on visitors, playdates, and child-related outings.
Additionally, many families will include examples of conduct that may result in immediate termination, such as lying or theft, substance use while working, repeated no-shows, serious safety violations, or breach of confidentiality. Finally, because Colorado is an at-will employment state, either the family or the nanny may end the working relationship at any time, with or without notice, as long as the reason is lawful. However, a comprehensive contract should include the family’s preferred notice period. It’s best practice that if a family is requesting 4-weeks’ notice, the family should also provide four weeks’ notice if they decide to let the nanny go.
A reputable nanny agency should help its clients think through these details before an offer is ever made. At ABC Nannies, we help our clients establish and fine-tune their expectations around schedule, pay, duties, benefits, communication, legal payroll, and household norms during the placement process, which means fewer surprises and a smoother start for everyone involved.
Discover the ABC Nannies difference. With over 30 years of proven success, ABC connects exceptional nannies and household staff with local families who value professionalism, reliability, and top-notch care.
- If you found this article useful, you might also enjoy this: Nanny Benefits: What to Offer.
- If you’re a family looking to hire a nanny, we’d love to help. Complete our Family Application here.
- If you’re a candidate looking for your next position, apply here.
