Quick Answer
Ending a nanny placement is one of the more uncomfortable parts of being a household employer. Most families put it off too long, handle it awkwardly, or get the legal side wrong. This guide covers what you actually owe under California law, what to say, and how to handle the transition professionally, whether it is a performance issue or simply a change in circumstances.
Ending a nanny placement is one of the more uncomfortable parts of being a household employer. Most families put it off too long, handle it awkwardly, or get the legal side wrong. This guide covers what you actually owe under California law, what to say, and how to handle the transition professionally, whether it is a performance issue or simply a change in circumstances.
Quick answer: In California, final wages are due on the day of termination. Severance is not legally required but is standard practice. Notice and severance are not the same thing. Unused PTO is paid out; unused sick time is not.
Do you have to give notice before letting a nanny go?
California is an at-will employment state. You can end the relationship at any time, for any legal reason, without advance notice, and the same applies in reverse. Two weeks' notice is the professional standard, and if your work agreement specifies a notice period, you are contractually bound to honor it.
If you choose to terminate immediately rather than work a notice period, the professional move is to pay out the notice period as a goodwill payment. This is not the same as severance, it is a practical way to close the relationship cleanly without asking someone to work an awkward final two weeks.
Notice vs. severance: what is the difference?
Notice is advance warning that employment is ending. Severance is a payment made after termination, beyond what is legally owed. They are separate concepts and should not be blurred.
You are not legally required to provide either under California law. That said, severance is the professional standard for placements of six months or more, typically two weeks' pay. For longer placements (one year or more), one month is more appropriate. It reduces the risk of unemployment disputes and reflects well on you as an employer.
Do I have to give severance to a nanny in California?
No. California does not require severance payments for household employees. However, if your work agreement includes a severance provision, you are bound by it. For placements with no written severance terms, it remains a professional courtesy rather than a legal obligation, but one that most reputable agencies, including ours, recommend.
What do you legally owe on the day of termination?
Under California Labor Code Section 201, final wages are due immediately on the day of termination. This includes:
- All unpaid regular hours worked
- Any accrued, unused paid vacation or PTO (California treats accrued vacation as earned wages, it must be paid out)
- Any guaranteed hours owed for the current pay period, if guaranteed hours are specified in writing in your work agreement
Unused sick time is different. Under California law, accrued sick leave is not considered earned wages and does not need to be paid out at termination. This is a common point of confusion, sick time and PTO are treated differently.
On the method of payment: if you normally pay by direct deposit, you can use the same method for final wages as long as the funds are available on termination day. A same-day bank transfer or cash is cleanest if there is any doubt about timing. Do not let it slip to the next regular pay cycle.
What happens if I do not pay final wages on time?
California's waiting time penalties are significant. If you willfully fail to pay final wages on time, your former employee can be entitled to one full day of wages for every day the payment is late, up to 30 days. On a $35/hr, 8-hour-day arrangement, that is up to $8,400 in penalties on top of the wages owed. This is not theoretical, it comes up in disputes and it is enforced.
Will my nanny qualify for unemployment?
Almost certainly yes, if the termination was not for serious misconduct. In California, employees who are let go, including for performance reasons, generally qualify for unemployment insurance. Employees who quit voluntarily typically do not. If you have been paying payroll taxes correctly (which you are required to do), your former nanny can file a claim with the EDD. This is one more reason to have your payroll in order before an issue arises.
How to have the conversation
Keep it short, calm, and direct, and be respectful throughout. A few things that help:
- Do it in person whenever possible, not by text or email
- Choose a neutral moment, not during childcare hours or in front of the children
- Be clear: "We have decided to end our arrangement. Your last day is [date]."
- Have final pay ready, or confirm the exact date and method of payment
- Be honest but brief, you do not need to detail every grievance, and an exhaustive explanation rarely helps anyone
A simple script if you need one:
"I wanted to speak with you directly. We have decided to move in a different direction with our childcare arrangements. Your last day will be [date]. We will have your final pay ready that day, which will include [any accrued PTO]. We appreciate everything you have done for our family."
Adjust as needed. If the reason is serious misconduct, you may say less. If it is a genuine life change (you are relocating, a parent is taking leave), say so, there is no reason not to be honest and it lands better.
Put the termination in writing, even briefly. A short written summary confirming the end date, final pay amount and method, and PTO payout is good practice. If possible, ask the nanny to sign acknowledging receipt of final wages, this closes the loop on wage disputes cleanly.
Keep a copy for your records for at least three years. California wage claims can surface long after a placement ends.
Property return
Before or on the final day, collect any property belonging to your household: house keys, gate or garage codes (change them), family credit or debit cards, car seats if provided, family devices, parking passes, and any other access credentials. Do not leave this for later, it is awkward to chase and creates unnecessary tension.
Confidentiality
If your work agreement included a confidentiality or non-disclosure provision, remind the nanny of it at termination, calmly and without accusation. A brief verbal reminder paired with the written agreement is sufficient. If you did not include one and your family's privacy matters to you, consider adding it to any future work agreements from the start.
If the situation becomes difficult
Stay calm and stick to facts. The decision is made, this is an informational conversation, not a negotiation. If things escalate, end the conversation and follow up in writing to confirm the termination date and final pay details. A clear paper trail matters if a dispute arises later.
For serious conduct issues, theft, safety concerns, or harassment, consult an employment attorney before the conversation. California has strong worker protections and you want to handle it correctly from the start.
How to tell your children
Keep it simple and age-appropriate. Young children do not need the full picture, "Our nanny is moving on to a new job, and we are going to find someone new" is usually enough. Avoid putting them in the middle or sharing adult context they cannot process. Give them space to feel whatever they feel, and frame the change as a normal part of life rather than something wrong that happened.
If the nanny was close to your children, a brief goodbye, on a day you choose, can help with closure. This is your call based on the circumstances.
What about a reference?
You are not obligated to provide one. If the placement ended on good terms, offering a reference is a professional courtesy that most families extend. If it did not, a neutral confirmation of employment dates is sufficient. Avoid saying anything that could be construed as defamatory, stick to verifiable facts.
Need help navigating this?
If your placement came through us and you are within the guarantee period, get in touch before the termination conversation. We will walk you through the process and start your replacement search at no additional fee.
Contact Us
Frequently asked questions
Do I have to give my nanny two weeks notice?
No. California is an at-will state and no notice is legally required. However, two weeks is the professional standard, and if your work agreement specifies a notice period you are contractually bound to it. If you terminate immediately, paying out the notice period as a goodwill gesture is standard practice.
Is severance required when letting a nanny go in California?
No. California law does not require severance for household employees. It is a professional standard for placements of six months or more, typically two weeks' pay, and is strongly recommended to reduce the risk of disputes, but it is not a legal obligation unless specified in your work agreement.
When is final pay due when you fire a nanny in California?
Final wages, including all unpaid hours and any accrued unused vacation, are due on the day of termination under California Labor Code Section 201. Failure to pay on time can result in waiting time penalties of up to 30 additional days of wages.
Do you have to pay out unused sick time when a nanny leaves?
No. In California, accrued sick leave is not treated as earned wages and does not need to be paid out at termination. Accrued vacation and PTO must be paid out; sick time does not.
Will my nanny qualify for unemployment after being let go?
Most likely yes. In California, employees who are terminated, including for performance reasons, generally qualify for unemployment insurance through the EDD, as long as the termination was not for serious misconduct. This is one reason to ensure payroll taxes have been paid correctly throughout the placement.
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Common questionsFrequently asked questions
How often should I give my nanny a raise?
Annual raises are standard. In Los Angeles, experienced nannies typically receive $1 to $2 per hour annually or 3 to 5% of their current rate. If their pay has fallen below market rate, a one-time adjustment to market followed by annual increments is appropriate.
What is the most common reason nannies leave?
Pay that has not kept pace with market rates, scope creep without compensation adjustment, consistent boundary violations like routine overtime or last-minute schedule changes, and feeling that their work is not acknowledged. Most of these are preventable.
How do I handle a disagreement with my nanny?
Address it directly and privately, as soon as possible. Be specific about the behavior you observed, not a character judgment. Most nannies respond well to direct, respectful feedback. Letting issues build without addressing them is the most common source of sudden resignations.
Should I give my nanny paid vacation?
California requires a minimum of 5 paid sick days per year. Paid vacation is not legally required but is standard for long-term placements in Los Angeles. Most families offer one to two weeks of paid vacation after one year. Accrued vacation must be paid out upon termination.
How do I prevent nanny burnout?
Define the role clearly, maintain reasonable and predictable hours, give advance notice for schedule changes, recognize good work specifically and regularly, and conduct structured check-ins where the nanny can raise concerns safely. Burnout builds slowly from accumulated small things, not one dramatic event.
What should I do if my nanny and child are not bonding?
Most children take two to four weeks to warm up to a new nanny. If there is no genuine connection by six weeks, have a direct conversation about what you are observing and what they can try differently. If the pattern continues, involve your placement agency before the guarantee window expires.
How do I keep a great nanny long-term?
Competitive pay, consistent communication, clear boundaries, and genuine appreciation are the biggest factors. Annual raises (3 to 5% is standard), acknowledging milestones, and giving adequate notice of schedule changes all contribute to long-term retention.
When should I give my nanny a raise?
Annually is the standard. A 3 to 5% increase is typical; more if their responsibilities have expanded or the market rate has moved. Cost of living in Los Angeles means staying competitive is important to retain experienced candidates.
What are the signs of nanny burnout?
Reduced engagement with the children, increased sick days, shorter communication, arriving late or leaving early. Burnout often stems from unclear expectations, insufficient breaks, or feeling undervalued. Early conversations usually resolve it before it becomes a resignation.
How do I handle disagreements with my nanny professionally?
Address issues directly and early rather than letting them build. Use a private setting, focus on specific behaviors not character, and listen to their perspective. Many families benefit from a written work agreement that covers expectations in advance.
Common questionsFrequently asked questions
How often should I give my nanny a raise?
Annual raises are standard. In Los Angeles, experienced nannies typically receive $1 to $2 per hour annually or 3 to 5% of their current rate. If their pay has fallen below market rate, a one-time adjustment to market followed by annual increments is appropriate.
What is the most common reason nannies leave?
Pay that has not kept pace with market rates, scope creep without compensation adjustment, consistent boundary violations like routine overtime or last-minute schedule changes, and feeling that their work is not acknowledged. Most of these are preventable.
How do I handle a disagreement with my nanny?
Address it directly and privately, as soon as possible. Be specific about the behavior you observed, not a character judgment. Most nannies respond well to direct, respectful feedback. Letting issues build without addressing them is the most common source of sudden resignations.
Should I give my nanny paid vacation?
California requires a minimum of 5 paid sick days per year. Paid vacation is not legally required but is standard for long-term placements in Los Angeles. Most families offer one to two weeks of paid vacation after one year. Accrued vacation must be paid out upon termination.
How do I prevent nanny burnout?
Define the role clearly, maintain reasonable and predictable hours, give advance notice for schedule changes, recognize good work specifically and regularly, and conduct structured check-ins where the nanny can raise concerns safely. Burnout builds slowly from accumulated small things, not one dramatic event.
What should I do if my nanny and child are not bonding?
Most children take two to four weeks to warm up to a new nanny. If there is no genuine connection by six weeks, have a direct conversation about what you are observing and what they can try differently. If the pattern continues, involve your placement agency before the guarantee window expires.
How do I keep a great nanny long-term?
Competitive pay, consistent communication, clear boundaries, and genuine appreciation are the biggest factors. Annual raises (3 to 5% is standard), acknowledging milestones, and giving adequate notice of schedule changes all contribute to long-term retention.
When should I give my nanny a raise?
Annually is the standard. A 3 to 5% increase is typical; more if their responsibilities have expanded or the market rate has moved. Cost of living in Los Angeles means staying competitive is important to retain experienced candidates.
What are the signs of nanny burnout?
Reduced engagement with the children, increased sick days, shorter communication, arriving late or leaving early. Burnout often stems from unclear expectations, insufficient breaks, or feeling undervalued. Early conversations usually resolve it before it becomes a resignation.
How do I handle disagreements with my nanny professionally?
Address issues directly and early rather than letting them build. Use a private setting, focus on specific behaviors not character, and listen to their perspective. Many families benefit from a written work agreement that covers expectations in advance.
