Nanny Contracts: What to Know Before You Hire a Nanny in Portland
Drafting an employment agreement, also known as a “nanny contract,” is the first step in building a successful nanny-family relationship. A written agreement helps establish clear boundaries and expectations for both parties, reducing the chance of confusion or conflict down the road. A good nanny contract should detail each of the key aspects of a nanny’s position, like compensation, paid time off, and confidentiality. At Pearl Nannies, we create a custom employment agreement for each of our clients to address the specific needs of families and nannies in Portland, Oregon. Read on to learn about the basic clauses to include in your nanny contract.
Start Date, End Date, and Worksite Address
A nanny contract should begin with the start date and end date of the nanny’s position. If the role is planned to be indefinite, you can state the employment relationship will continue until either party elects to terminate. State the address where the work will take place, which is usually the family home.
Work Schedule
A detailed typical work schedule should be included in your nanny contract. It should state the work hours of each day and the total weekly hours. If schedule flexibility will be needed, state that in this section, along with how much notice will be given for any changes. For example, you could agree to give at least 48 hours of notice. State that if the schedule change is shorter notice, the nanny will make an effort to accommodate the change, but will not be required to do so.
Compensation
This section should cover the specifics of your nanny’s compensation. State their hourly rate and their overtime rate (1.5x the regular hourly rate) – Overtime pay is legally required for any hours worked beyond 40 hours in a week. Then, using the total weekly hours from the Schedule section, calculate the nanny’s standard weekly pay. State how often wages will be paid and what method of payment will be used.
The industry standard is to pay your nanny a guaranteed weekly rate for their scheduled hours, commonly referred to as “guaranteed hours.” By law, nannies cannot be salaried employees, so guaranteed hours ensure a consistent paycheck for your nanny, even when their services are not needed. So when you go on vacation or take a day off to spend time with your kids, your nanny will not miss out on pay. While not a strict requirement, providing guaranteed hours makes it more likely that your nanny will be happy in their position and stay with your family long-term.
If you will be providing guaranteed hours to your nanny, state that the weekly rate of pay will be guaranteed, whether or not care is needed.
Job Responsibilities
Your nanny contract should state the duties your nanny will be responsible for in their position. Specify everything from basic care tasks to specialized tasks you have agreed to, like transportation to activities or curriculum assistance. It’s important to list all specific job responsibilities to reduce the chance of conflict later. It’s a common scenario for a nanny to become unhappy in their role as their employer adds unspecified duties to their job over time. If it’s not listed in the Job Responsibilities section of your agreement, don’t expect your nanny to do it. If your family wants to add more responsibilities to your nanny’s job later, a formal discussion and an appropriate pay adjustment will be necessary.
Paid Time Off and Holidays
This section should detail your nanny’s paid time off and holidays. The expectation of most professional nannies is two weeks of paid vacation time, and major holidays off and paid. A family should consider offering paid time off and holidays to reduce nanny burnout and increase the likelihood of keeping their nanny long-term. State how much paid time off your nanny will receive each year, and state what holidays they will receive off and/or paid. Additionally, detail how unused PTO will be handled at the end of employment.
Benefits
Include a Benefits section if you intend to offer any additional benefits. These could include a health insurance stipend, personal use of a family vehicle, or set annual percentage-based raises. You could get creative here – some families offer things like a gym membership or a stipend for continuing education. State what benefits you’re offering, along with their terms.
Tax Withholding and Reporting
For the 2025 tax year, if you pay your nanny $2,800 or more in the calendar year, you are legally obligated to pay employment taxes. It’s recommended to use a payroll service that will pay your nanny each pay period with taxes withheld, and assist you with filing employment taxes as required. In your nanny contract, state how you will handle tax withholding and reporting.
Live-In Accommodations and Policies
If your nanny will be living with your family during employment, your contract should include a Live-In Accommodations and Policies section. It should state what rooms they will occupy and what areas they are free to use. Be specific – Will they have a separate living quarters on your property or a bedroom in your home? Will they have a private bathroom? Will they have their own area to prepare food or will they use the main kitchen? Basic house rules should be specified as well, like quiet hours and policies on guests.
Most live-in nannies do not pay rent or utilities, because having a live-in nanny is typically to the benefit of the employer family. Keep in mind that if a nanny does pay any form of rent, they may legally be considered a tenant with tenant’s rights, so it would be difficult to enforce moving out in the event of termination. If you and your nanny agree to some deduction for rent or living expenses, consult with a legal professional to find out the best way to do so.
General Expenses and Transportation
When your nanny is on the job, general expenses will probably arise – things like a trip to the Oregon Zoo or supplies for a school project. A nanny contract should detail how these expenses will be covered, such as a credit card or a petty cash fund. State what form of payment will be available for your nanny to use, along with spending limits and protocol for receipts.
If your nanny will be driving your children in their own car, they will need to update their auto insurance policy to cover your children in the event of an accident on a work-related drive. Any rate increase that comes with the policy adjustment would be covered by you, and that should be stated in your nanny contract. Additionally, any miles driven in your nanny’s car need to be reimbursed at the IRS Mileage Reimbursement Rate. State the current IRS rate (70 cents per mile in 2025) in your agreement and how your nanny will submit miles for reimbursement.
Overnight Care
Even if you don’t expect your nanny to provide overnight care, it’s a good idea to include this clause so expectations are clear in case of unforeseen circumstances. Most nannies will charge their hourly rate until bedtime, and then an overnight fee until the children wake up. This fee can vary widely, so ask your nanny what they charge for overnight care. In this contract section, state the expected frequency of overnight care, along with your nanny’s overnight fee.
Travel
This section covers how expenses and compensation will be handled in the event of your nanny accompanying your family during travel. All travel-related expenses, including flights, meals, and accommodations, should be covered by you, the employer. Your nanny should be paid their guaranteed weekly rate, as well as additional pay for any hours worked outside of their regular schedule. In addition to hourly pay, most nannies charge an additional daily fee for travel. State the expected frequency of travel, and detail how and what expenses will be covered. State the nanny’s daily travel fee as well.
Confidentiality
Nannies learn a lot about the families they work for during the course of employment, so it’s important to include a confidentiality clause in a nanny contract. State that private information obtained about your family or your children during the course of employment are strictly confidential and may not be disclosed to any third party for any reason.
Social Media Policy
Your nanny probably has social media accounts, so clearly state the expectations around sharing information and photos. At Pearl Nannies, our employment agreements state that no information about a nanny’s location, plans for the day, or pictures of children/family members should be shared on any social media network for any reason.
Termination
When your employment relationship comes to an end, it’s helpful to have a process outlined for how to handle it. State how much notice each party is required to give before terminating employment. Include what should happen in case of failure to give appropriate notice, such as a paid severance. Also, state any grounds for immediate termination without notice, such as:
- allowing the safety of the child to be compromised
- inconsistent or non-performance of agreed-upon job responsibilities
- breach of confidentiality or social media clause
- anything else that would be a dealbreaker for your family
These basic clauses are a great start for any nanny contract. When drafting your nanny contract, consider what other aspects of your nanny’s role you want to detail, like pet care, specific medical needs, or discipline guidelines. At Pearl Nannies, we serve as a liaison between families and nannies during the contract creation process to ensure all parties are happy with the terms. A detailed employment agreement creates a strong foundation for a successful nanny-family relationship.