A family hires a neighbor’s daughter to watch the kids a few afternoons a week. They set the hours, she follows the house rules, she becomes “family,” and everyone is happy until the arrangement ends on bad terms and the family discovers they may have been an employer all along, with tax and wage obligations they never saw coming.
Stories like that are more common than most people expect. As a business law attorney, I advise companies on worker classification, the line between an employee and an independent contractor. Lately, the same questions have been surfacing inside private homes.
It’s Not About the Label
Calling someone an “independent contractor” doesn’t make them one. When a disagreement arises, courts and agencies look at how the relationship actually functioned, not the label the parties chose. As a general rule, if you’re hiring an individual to help your household run, the relationship is more likely to be viewed as employment. By contrast, when you’re hiring an established business that serves multiple clients, the relationship may be more consistent with an independent contractor arrangement.
Control and Dependence
Control is often one of the most significant factors Washington courts consider. Do you set the schedule, decide how the work gets done, and provide the supplies? Can you let the person go for not following instructions? Generally, more “yes” answers suggest an employment relationship. In Washington, courts also weigh economic dependence. In Anfinson v. FedEx Ground, the Washington Supreme Court explained that in certain wage disputes, judges may look past labels to ask whether a worker is economically dependent on a single household for income or is genuinely running an independent business serving many clients.
Why It Matters
A worker thought of as a contractor may later claim they were entitled to minimum wage, overtime, paid leave, or unemployment protections. Even well-intentioned arrangements can lead to legal disputes.
Bartering complicates things further. Plenty of household arrangements involve childcare in exchange for reduced rent, meals, or the use of a car. These deals often start among acquaintances and are made with the best of intentions, but trading services for benefits doesn’t erase the possibility of an employment relationship.
Put It in Writing — Carefully
A written agreement can help. A good one sets expectations around pay, responsibilities, schedules, and how to handle disagreements. But it’s one piece of the picture, not the whole thing. Courts and agencies generally place significant weight on how the relationship functioned in practice, rather than the label the parties used. Generally, agreements are most effective when they accurately describe the parties’ actual relationship, rather than dressing it up as something it isn’t.
A Change on the Horizon
Washington recently adopted a Domestic Workers Bill of Rights that will take effect July 1, 2027, which creates new protections for many domestic workers, including certain nannies, childcare providers, housekeepers, gardeners, cooks, household managers, and similar workers who perform services in private residences for a minimum of four hours per month. The law will require written agreements, wage and hour protections, termination notice requirements, and other employment-related obligations for covered relationships.
As one example, the law includes restrictions on the number of hours a domestic worker may be employed in a workweek, and certain violations may be treated as a misdemeanor crime rather than merely a civil employment matter.
While some casual and irregular babysitting arrangements may be exempt, families who regularly hire domestic workers should pay close attention to these developments and consider reviewing their current practices before the law takes effect.
A Practical Takeaway
Before you hire a babysitter, nanny, or housekeeper, take a moment to understand the relationship you may be creating. In many situations, consulting with an attorney or tax professional up front can be less costly than addressing a dispute after it arises.
At Sound Impact Law, we regularly help families and businesses think through worker classification, agreements, and compliance — whether you’re hiring your first nanny or weighing a childcare-for-housing arrangement.
This article is for general educational purposes only and is not legal advice. Every situation is different; please consult a qualified attorney or tax professional about your specific circumstances.
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