Mandatory Work Agreements for Nannies?

The Montgomery County (MD) Council is considering a proposal to make employment agreements mandatory for in home workers employed by the same family for 20 hours or more per week, according to a January 26 report in the Washington Post.

The work agreements would memorialize the terms and conditions of employment, as well as be required to state the state and county protections the domestic workers are entitled to (including minimum wage, overtime for hours over 40 in a week, a private room with a lock for live in workers, unemployment and worker's compensation insurance).

Violations would be subject to a $1000 per violation fine. The covered workers include nannies, housekeepers, cooks, and elder care workers.

The bill requires the approval of the County Council and the County Executive to become law.

Interestingly, according to IRS statistics, nanny tax compliance in Montgomery County MD is the highest in the nation at 1238% the national average filing rate (Tax Year 2003). Montgomery County includes the Washington DC suburbs of Potomac, Bethesda, Chevy Chase and Silver Spring. The estimated median home/condo value in Chevy Chase in 2005 was $1,054,100.