Do you pay your nanny when you go on vacation? Federal law doesn’t require it, but the standard practice in domestic employment is yes — you keep paying your nanny their normal wages during any family-initiated absence.1U.S. Department of Labor. Vacation Leave And if your employment agreement guarantees a set number of hours per week, that vacation pay is usually treated as earned wages you owe, not a courtesy.
Why Paying Through Your Vacation Is the Norm
Most nanny agreements are built around guaranteed hours. You commit to a set weekly schedule and pay for those hours whether or not you use them. Your nanny, in return, blocks off that time for your family and turns down other work. When you leave for a two-week trip, the hours are still reserved for you, so the pay still runs.
The practical case is just as strong as the contractual one. A nanny who loses a paycheck every time your family travels has a real incentive to find a family with steadier income. Recruiting, interviewing, and training a replacement almost always costs more than paying through a week or two away.
What to Put in the Written Agreement
A written agreement is the cleanest way to avoid a dispute later. At a minimum it should state the guaranteed weekly hours, the hourly rate, and that pay continues during family-initiated time off. It should also say how much notice you’ll give before a planned absence.
Handle the nanny’s own paid vacation separately. A common setup is two weeks of paid vacation the nanny chooses, plus continued pay during any additional weeks your family is away. If your nanny happens to schedule their personal vacation during a week you’re also gone, that week counts against the nanny’s allotment rather than doubling up as free time for you.
Once vacation pay is promised in writing, it’s typically treated as earned wages under state law. Not delivering on it can expose you to a back-wage claim.
If You Ask Your Nanny to Work While You’re Away
Some families ask the nanny to handle light duties during the trip: organizing kids’ clothes, tidying play areas, picking up mail, watering plants. That’s fine, but every hour actually worked has to be paid. You cannot call working time unpaid time off.
The Fair Labor Standards Act covers most nannies and sets the floor.2eCFR. 29 CFR Part 552 – Application of the Fair Labor Standards Act to Domestic Service Every hour worked must pay at least the federal minimum of $7.25 an hour, and many states set a higher floor.3U.S. Department of Labor. Minimum Wage If the duties push your nanny over 40 hours in a workweek, you owe time-and-a-half on the overage.4U.S. Department of Labor. Fact Sheet 79D – Hours Worked Applicable to Domestic Service Employment Under the FLSA One exception: a live-in nanny is exempt from federal overtime, though minimum wage still applies to every hour worked.
When Your Nanny Comes on the Trip
Bringing your nanny along changes the picture. You’re no longer deciding whether to pay for time off — you’re deciding which hours count as work.
Hours That Count as Work
Any time your nanny is caring for the kids, supervising, or standing by in case they’re needed is paid time. A nanny reading in the hotel room while the children nap is “engaged to wait” and must be paid.4U.S. Department of Labor. Fact Sheet 79D – Hours Worked Applicable to Domestic Service Employment Under the FLSA Travel time during normal working hours — a daytime flight with your kids, for example — counts as hours worked, even on a day the nanny wouldn’t ordinarily work.5U.S. Department of Labor. Fact Sheet 22 – Hours Worked Under the Fair Labor Standards Act
The Department of Labor’s enforcement policy does not count travel outside regular working hours when the nanny is riding as a passenger with no responsibility for the children.6U.S. Department of Labor. Domestic Service Final Rule Frequently Asked Questions If the nanny is expected to help with or watch the kids during a late-night flight, though, that time is paid regardless of the clock.
Sleep Time on Overnight Trips
When a nanny is on duty for 24 hours or more, you may exclude up to eight hours of sleep from paid time, but only if the nanny actually gets at least five consecutive hours of uninterrupted sleep. If the children wake them repeatedly and a reasonable rest period isn’t possible, you owe pay for the whole night.4U.S. Department of Labor. Fact Sheet 79D – Hours Worked Applicable to Domestic Service Employment Under the FLSA
Travel Expenses
Federal law doesn’t specifically require you to reimburse a traveling nanny’s airfare, meals, or lodging. Industry practice is universal, though: the family covers all travel costs when the nanny comes along. Making the nanny pay their own way effectively cuts their agreed wage.
Vacation Pay Still Runs Through Payroll
Vacation pay is wages, and it carries the same tax obligations as any other paycheck. Paying “under the table” for a vacation week is the same risk as paying under the table any other week.
The main threshold for 2026 is $3,000. If you pay a household employee $3,000 or more in cash wages during the calendar year, you must withhold and pay Social Security and Medicare taxes on all wages paid that year — 6.2% and 1.45% withheld from the nanny, matched by you, for a combined 15.3%.7Internal Revenue Service. Publication 926 (2026), Household Employer’s Tax Guide8Employment and Training Administration – U.S. Department of Labor. Unemployment Insurance Tax Topic Most household employers report all of this once a year on Schedule H with their Form 1040 and issue the nanny a W-2 at year end.9Internal Revenue Service. About Schedule H (Form 1040), Household Employment Taxes
Skipping the paperwork for a vacation week isn’t a shortcut. The failure-to-file penalty is 5% of unpaid tax per month, up to 25%, and a separate 0.5%-per-month failure-to-pay penalty runs alongside it with its own 25% cap, plus interest.10Internal Revenue Service. Failure to File Penalty11Internal Revenue Service. Failure to Pay Penalty Keeping payroll on its normal schedule while you’re away is the simplest way to avoid all of it.
State Rules Can Go Further
Federal law is the floor. Several states and cities have passed domestic workers’ bills of rights that add rest periods, notice requirements, and other protections on top of the FLSA. Many states also require household employers to carry workers’ compensation for domestic employees, and a handful require contributions to paid family leave or temporary disability programs. These apply to every dollar of wages, vacation pay included. Check your state labor department for the rules that apply where you live.