Nanny PTO: How to Handle Paid Time Off, Vacation & Sick Days

"How much vacation should I give my nanny?" is one of the most common questions new household employers ask—and one with no single right answer.

There's no federal law requiring paid time off for nannies. But most families offer it anyway, because good nannies are hard to find and even harder to replace.

Here's how to think about it, what's typical, and how to put a policy in writing.

What the Law Actually Requires

Federal law

The Fair Labor Standards Act (FLSA) does not require employers to provide paid vacation, paid holidays, or paid sick leave. This applies to all employers, including household employers.

However, you still must pay your nanny for all hours worked—including time that feels like "downtime" if they're on the clock (e.g., when the baby naps).

State and local laws

This is where it gets important. Over 15 states and many cities now require paid sick leave, and these laws generally cover household employees:

Many cities also have their own laws (San Francisco, Seattle, Philadelphia, etc.) that may be more generous than the state requirement.

Check your state's full requirements →

Bottom line: Even if federal law doesn't require PTO, your state probably requires at least paid sick leave. Check before you write your policy.

What Most Families Offer

Based on industry norms from nanny placement agencies and surveys, here's what's typical:

Paid vacation

Paid sick days

Paid holidays

Most families offer 6–8 paid holidays per year. The most common:

• New Year's Day
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Day after Thanksgiving
• Christmas Day
• One floating holiday or personal day

Total PTO summary

This is in line with what many full-time office workers receive, which makes sense—your nanny is a professional, and treating them like one helps with retention.

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How to Structure Your PTO Policy

Option A: Combined PTO bank

Give your nanny a total number of days (e.g., 10 days) they can use for any purpose—vacation, sick, personal. Simple to track, flexible for the nanny.

Pros: Easy to administer, nanny has full flexibility Cons: Nanny may not save any days for illness

Option B: Separate buckets

Break PTO into categories: vacation (5 days), sick (3 days), personal (2 days). Each has its own rules.

Pros: Ensures sick days are available when needed Cons: More to track, less flexibility

Option C: Accrual-based

PTO accrues over time (e.g., 1 day per month worked). Common in corporate jobs, less common for nannies.

Pros: Fair for mid-year starts, aligns with some state sick leave laws Cons: More math, harder to explain

Our recommendation: Option A (combined PTO bank) works best for most families. It's simple, fair, and easy to track. Holidays are in addition to the PTO bank.

Key Policy Decisions

Before writing anything down, decide on these:

Who picks vacation dates?

Three common approaches:

1. Nanny chooses: They pick their vacation days with reasonable notice (2+ weeks). Simplest and most employee-friendly.
2. Family chooses: Vacation aligns with when your family is traveling. Less flexible for the nanny.
3. Split: Half chosen by the nanny, half by the family (e.g., "We'll give you a week when we're at the beach in July—you pick the other week").

Option 3 (split) is the most common arrangement and generally feels fair to both sides.

What happens when your family takes vacation?

This is the #1 source of PTO disputes. There are two schools of thought:

Approach A: Nanny is paid regardless If your family goes on vacation and doesn't need the nanny, the nanny still gets paid. This is the industry norm for full-time nannies—they're available to work; you chose not to use them.

Approach B: It counts against the nanny's vacation Some families count family vacations as the nanny's vacation time. This only works if it's agreed upon upfront and the nanny has enough PTO.

The standard: If your nanny is available and willing to work but you don't need them, they should be paid. Their time off should be their choice, not yours.

Does unused PTO roll over?

• Use it or lose it: PTO resets at the start of each year. Simple, but check your state law—some states prohibit use-it-or-lose-it policies.
• Rollover: Unused days carry into the next year, with a cap (e.g., max 15 days banked). More generous.
• Payout: Unused PTO is paid out at year-end. Some states (California, Illinois, others) require payout of accrued vacation upon termination.

Advance notice requirements

It's reasonable to ask for:

• Vacation: 2–4 weeks' notice
• Sick days: Morning of, or as soon as possible
• Personal days: 1 week notice

Put It in Writing

Your PTO policy should be part of your nanny's employment agreement. Here's what to include:

PTO section checklist:

• Total PTO days per year (or accrual rate)
• List of paid holidays
• How vacation dates are chosen
• What happens when the family doesn't need the nanny
• Notice requirements for time off
• Whether unused PTO rolls over or pays out
• Probationary period (if any) before PTO starts
• What happens to unused PTO if the nanny leaves

Even a simple paragraph is better than nothing. Having it in writing prevents misunderstandings and protects both sides.

How PTO Affects Payroll and Taxes

PTO is straightforward from a tax perspective:

• Paid time off is paid at the nanny's regular rate. If they make $20/hour and take a vacation day (8 hours), they earn $160 for that day.
• All normal taxes apply. Social Security, Medicare, income tax—PTO pay is treated identically to hours worked.
• PTO does not count as "hours worked" for overtime. If your nanny takes Monday off (PTO) and works Tuesday through Saturday (40 hours), they worked 40 hours—no overtime owed. Overtime is based on hours actually worked, not hours paid.

What About Unpaid Time Off?

It's reasonable to allow some unpaid time off beyond the PTO allowance—just set expectations:

• How much unpaid time is acceptable per year
• How far in advance they need to request it
• Whether excessive unpaid absences are grounds for a conversation

Many families allow 3–5 additional unpaid days per year with advance notice.

FAQ

Am I legally required to give my nanny paid vacation?

No federal law requires paid vacation for household employees. However, 15+ states require paid sick leave, which may cover your nanny. Check your state's requirements. Beyond legal requirements, paid vacation is standard practice and helps retain good caregivers.

What if my nanny is sick but has no sick days left?

You can allow unpaid sick days, or let them borrow from future PTO. Whatever you decide, be clear about it upfront. Some states require a minimum number of paid sick days regardless of your policy.

Should PTO start on day one or after a probationary period?

Both approaches are common. Some families offer PTO from day one; others wait 60–90 days. If your state mandates paid sick leave, it usually begins accruing from the first day of work—you can't impose a waiting period on the legally required portion.

Do I have to pay out unused vacation when my nanny leaves?

It depends on your state. California, Illinois, Montana, and several other states require payout of accrued, unused vacation upon termination. Other states leave it up to your policy. Check your state law and put the answer in your employment agreement.

How do I handle holidays when my nanny works a non-standard schedule?

If your nanny works Monday, Wednesday, Friday and a holiday falls on Tuesday, they typically wouldn't get an extra paid day. Holidays only apply to days they would normally work. If a holiday falls on their scheduled day, they get paid for it without working.

Is my nanny's PTO taxable?

Yes. PTO pay is subject to all the same employment taxes as regular wages—Social Security, Medicare, federal and state income tax. There's no difference in how you process it through payroll.