Childcare Contracts: Essential Terms for Families and Providers
Why a Written Childcare Contract Protects Everyone
A childcare contract establishes clear expectations between families and providers — whether it is a daycare center, in-home provider, or nanny. Without written terms, misunderstandings about payment, sick days, holidays, and responsibilities can damage a relationship that both parties depend on.
Schedule and Hours
- Regular hours: Specific start and end times for each day of care
- Drop-off and pickup windows: What are the acceptable arrival and departure times?
- Late pickup fees: What is the charge per minute for late pickups? ($1-5 per minute is common)
- Holidays: Which holidays is the provider closed? Is payment still required for holidays?
- Vacation: How much vacation does the provider take? How much advance notice is required? Is payment still due during provider vacations?
Payment Terms
- Rate: Weekly or monthly rate, with clear calculation if the child attends part-time
- Payment due date: Typically due on the first day of the care week or month
- Late payment fees: Penalties for overdue payments
- Rate increases: How much notice must the provider give before raising rates? (30-60 days is standard)
- Tax obligations: For nannies, families are likely household employers with tax withholding obligations under the IRS "nanny tax" rules
Sick and Emergency Policies
- Sick child policy: Under what conditions must the child stay home? (Fever threshold, vomiting, contagious illness)
- Provider illness: What happens when the provider is sick? Is backup care available? Is payment still due?
- Medication administration: Will the provider administer prescribed medication? What documentation is required?
- Emergency medical authorization: Written authorization for the provider to seek emergency medical treatment if parents are unreachable
Safety and Authorized Persons
- Authorized pickup list: Names and identification requirements for anyone authorized to pick up the child
- Unauthorized persons: The provider should never release the child to someone not on the list without direct parental authorization
- Transportation: Will the provider transport the child? If so, car seat requirements and insurance coverage
- Background checks: Has the provider undergone a background check? Is one required by your state?
Termination
- Notice period: How much notice must either party give? (Typically 2-4 weeks)
- Immediate termination: Circumstances that warrant termination without notice (safety concerns, non-payment)
- Severance: For nanny arrangements, is severance pay provided?
When to Consult a Lawyer
If you are hiring a nanny or household childcare provider, consider consulting an employment attorney about your tax obligations, worker's compensation requirements, and liability exposure.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.