Do I have to pay a nanny overtime?

Generally yes. Under the FLSA most nannies are non-exempt and owed overtime at 1.5× their regular rate for hours over 40 in a week (live-in arrangements and some states differ). State the wage and overtime rate in the contract and track hours.

What are guaranteed hours?

A commitment to pay the nanny for their scheduled hours even when the family doesn't need all of them (e.g., 45 guaranteed hours/week). It's a common and expected term that gives the nanny income stability; state it clearly along with how overtime applies.

Is this contract enough on its own?

It is the core agreement, but you also need the household-employer tax setup (EIN, payroll/withholding, W-2) and must follow federal and state wage-and-hour and domestic-worker laws (some states have a Domestic Workers Bill of Rights). Have it reviewed by an attorney or a nanny-payroll service.

Do I have to pay a nanny overtime?

Generally yes. Under the FLSA most nannies are non-exempt and owed overtime at 1.5× their regular rate for hours over 40 in a week (live-in arrangements and some states differ). State the wage and overtime rate in the contract and track hours.

What are guaranteed hours?

A commitment to pay the nanny for their scheduled hours even when the family doesn't need all of them (e.g., 45 guaranteed hours/week). It's a common and expected term that gives the nanny income stability; state it clearly along with how overtime applies.

Is this contract enough on its own?

It is the core agreement, but you also need the household-employer tax setup (EIN, payroll/withholding, W-2) and must follow federal and state wage-and-hour and domestic-worker laws (some states have a Domestic Workers Bill of Rights). Have it reviewed by an attorney or a nanny-payroll service.

Nanny Employment Contract

A nanny employment contract — family and nanny, children, schedule and guaranteed hours, wages with overtime, duties, benefits (PTO/sick/holidays), tax treatment (W-2 household employee), confidentiality, termination/notice, and signatures.

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NANNY EMPLOYMENT CONTRACT

Employer (Family): The Morgan Family
   88 Forest Lane, Portland, OR 97211
Employee (Nanny): Jamie Lee
Children: Riley (8), Sam (5)
Start date: July 6, 2026

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SCHEDULE & WAGES
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  Schedule: Mon–Fri 8:00am–5:00pm; 45 guaranteed hours/week (paid even if family doesn’t need all hours).
  Wage: $25.00/hour
  Overtime: Overtime at 1.5× ($37.50/hr) for hours over 40/week, per FLSA (nannies are non-exempt).
  Pay: Paid biweekly by direct deposit; family withholds taxes and issues a W-2 (household employee).

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DUTIES
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Attentive childcare; meals/snacks; school/activity transport; bath & bedtime routines; light child-related housekeeping (kids’ laundry, tidy play areas); homework support. No heavy housekeeping.

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BENEFITS
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10 paid vacation days/year (mutually scheduled), 5 paid sick days, federal holidays paid. Mileage reimbursed at IRS rate for work driving.

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CONFIDENTIALITY
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Nanny will keep the family’s personal information and home private during and after employment.

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TERMINATION
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Either party may end employment with two weeks’ written notice (or two weeks’ pay in lieu by the family). Immediate termination for safety, neglect, or gross misconduct. 90-day introductory period.

TAX & EMPLOYMENT STATUS
   The nanny is a household EMPLOYEE (W-2), not an independent contractor. The
   family will withhold and pay applicable employment taxes (Social Security,
   Medicare) and comply with federal/state wage-and-hour and domestic-worker
   laws. Nannies are generally non-exempt and owed overtime.

SIGNATURES
  Family/Employer: ______________________________   Date: ______________
                   The Morgan Family
  Nanny/Employee: _______________________________   Date: ______________
                  Jamie Lee

About this template

A nanny employment contract sets expectations for a real employment relationship — and getting the legal status right is the part families most often miss. A nanny is almost always a **W-2 household employee, not an independent contractor**: above the IRS threshold the family must withhold and pay Social Security and Medicare (the "nanny tax") and issue a W-2, and misclassifying a nanny as a 1099 contractor is a common, costly mistake. Under the **FLSA most nannies are non-exempt**, which means **overtime at 1.5× after 40 hours a week** (live-in and state rules differ, and several states have a Domestic Workers Bill of Rights with added protections), so state the **hourly wage and overtime** explicitly and consider **guaranteed hours** (paying for scheduled hours even when not all are needed, which nannies value and many expect). From there it's a normal employment agreement: a clear **duties** list (childcare and child-related tasks, with a line on what is and isn't included), **benefits** (paid vacation, sick days, holidays, mileage), **confidentiality** about the family's home and information, and **termination/notice** (commonly two weeks, with an introductory period and immediate termination for safety issues). Pair it with the household-employer tax setup (EIN, payroll), verify your state's domestic-worker and wage rules, and have the contract reviewed by an attorney or a household-payroll service.

When to use it

Hiring a nanny or household childcare employee.
Documenting schedule, wage, overtime, and guaranteed hours.
Setting duties, benefits, and confidentiality.
Establishing termination terms and W-2 employment status.

What to include

Family and nanny, children, and start date.
Schedule/guaranteed hours, hourly wage, and overtime.
Duties and benefits (PTO/sick/holidays/mileage).
Confidentiality and termination/notice.
W-2 household-employee tax status and signatures.

Frequently asked

Almost always a household EMPLOYEE (W-2), not a 1099 contractor — the family controls the work, so the IRS treats the nanny as an employee. Above the annual threshold the family owes Social Security/Medicare (the "nanny tax") and issues a W-2. Misclassifying a nanny as a contractor is a common and costly error.

⚠ Legal disclaimer. This nanny employment contract is a general template, not legal or tax advice. A nanny is generally a W-2 household employee (not a contractor): the family owes employment taxes above the IRS threshold and must follow FLSA overtime rules (nannies are usually non-exempt) and any state domestic-worker laws, which vary. Set up household-employer payroll, verify your state's requirements, and have the contract reviewed by an attorney or household-payroll professional.

Jurisdiction: United States — an employment agreement between a family (household employer) and a nanny. A nanny is generally a W-2 HOUSEHOLD EMPLOYEE, not a contractor: above the IRS threshold the family owes Social Security/Medicare (the "nanny tax") and provides a W-2. Under the FLSA, most nannies are non-exempt and owed overtime (1.5× after 40 hours/week); live-in and state rules (some states have a Domestic Workers Bill of Rights with extra protections) vary. Verify wage/hour and tax obligations for your state.

Last reviewed: 2026-05

Reviewed by ScoutMyTool — consult a licensed attorney for binding use.