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Legal Tips for Hiring a Nanny

Christopher Coble, Esq.

Article by: Christopher Coble, Esq.

Updated by Kit Yona, M.A. | Last updated on

Some people dream of having one or both parents available to stay home full-time to raise their children, but this is not feasible for the majority.

While convenient options like helpful grandparents are good as babysitters, most must rely on someone outside the family offering a daily solution. Daycares and other group childcare options are popular choices, but some prefer to have a nanny or caretaker, either due to cost or to provide more focused care for their children.

Hiring a nanny dedicated to the care and oversight of your children when you can't be there — or even while you're there — can provide a trusted aide, but finding the right one is no easy task. In addition to logistical and safety issues, there are legal concerns you should keep in mind during any search for your children's potential minder.

Know What You're Looking for Before You Start Looking

It's easy to say that you want to hire a nanny, but defining your search before you begin can prevent you from wasting a lot of time later. Take some time to ponder your situation and exactly what you'll need from a nanny. Some questions that are a good start include:

  • Are you looking for a full-time, live-in nanny? If so, do you have accommodations in your home that are suitable?
  • What hours will you expect a part-time nanny to be available?
  • Will your nanny be expected to drive? If so, are they using their vehicle or yours?
  • How much can you offer as a salary? Will there be overtime pay?
  • Are there scheduled vacation days? Is there a limit on sick days?
  • Should the nanny have legitimate first aid skills?

Without having answers in place for these and other questions, you may be setting yourself up for a search filled with false starts and frustration. An accurate job description is a boon for everyone involved.

A Thorough Background Check Is Essential

Keep this in mind: this is a person you are going to trust with the safety of your children on a regular basis. Even if you go through a professional nanny agency to make a hire, conducting your own background check on applicants can't hurt. A criminal background check is a no-brainer, but what about other aspects?

If your potential nanny is going to be ferrying the kids around in a car, a review of their driving record is a good idea. Depending on the laws of your state, you may need the applicant's consent for the DMV to release their record. If the would-be nanny refuses, that may be a red flag you need to explore.

Most experienced nannies will come with recommendations. It's great if you can inherit a fantastic nanny from a trusted friend whose kids aged out of needing one, but other references shouldn't be taken at face value. It's a good idea to make contact. In many cases, you'll receive an enthusiastic endorsement about someone who was like part of the family. That can make your decision much easier.

Ensuring Eligibility

When you hire a nanny, you're becoming an employer of an independent contractor. You are subject to the same hiring laws as any other company when it comes to undocumented workers. With an administration that's taken an unyielding stance on immigrants and is eager to deport, hiring an undocumented worker is a risk in many ways.

You can check the legal status of any applicant through the government's E-Verify system. You'll be required to fill out an I-9 form for any nanny you hire, which means that avoiding detection with a non-legal hire is unlikely at best.

Put It in Writing

It's quite possible that your new nanny will become a beloved member of the family, adored by your kids and absolutely trusted by you. That doesn't change that it's a business arrangement, and one that should definitely include a contract that protects everyone involved.

Will your nanny be entitled to overtime if you're kept late at work? Are they permitted to bathe your kids? How often is payday? Are you offering health insurance? These are all matters that need to be agreed on and recorded to avoid issues later on. Having a nanny contract defines the legal parameters of the relationship. If you're uncertain of what the contract should contain, an employment attorney specializing in domestic staff concerns can be a big help.

Keep It Above the Table

Keeping the nanny's pay and other household employees off the books to save money can be a tempting choice. But if you do, you could face charges for tax evasion and tax fraud from the Internal Revenue Service (IRS). It also complicates things for the nanny, who can't report the income to earn future Social Security benefits or have access to workers' compensation insurance.

If you're not using a payroll service, you'll need to be aware of state laws on minimum wage, most of which are higher than the federal rate. You'll also be responsible for any required employment taxes and state unemployment insurance. If you need help setting up a new nanny's employment, reaching out to an accountant or an employment attorney is a modest up-front outlay that can save you from making any expensive mistakes.

A Part of the Family, but Also an Employee

A nanny can become an integral and trusted part of a family, providing priceless care for children who grow to love them. That doesn't change that they are a paid employee and that no matter how close they become, it's still based on a business relationship. Taking the time during the hiring process to find the right nanny to confirm eligibility and lock down the details in a contract isn't just a good idea; it's a necessity.

Most people aren't experts when it comes to evaluating or hiring a caregiver for their children. When in doubt, turning to an expert is a wise choice for peace of mind. An employment attorney who specializes in domestic employment can offer legal advice designed to make the addition to your family a safe and happy one.

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