Hiring a Nanny in South Carolina? Key Legal and Practical Challenges to Know First

Hiring a nanny is a deeply personal and impactful decision—one that shapes your child’s daily life and your family’s peace of mind. But in South Carolina, hiring a nanny comes with unique legal, financial, and cultural challenges that many families don’t discover until after problems arise. Whether you’re hiring a nanny independently or through an agency, it’s critical to understand the specific issues that can complicate the process in the Palmetto State.

At Lowcountry Nanny & Babysitting Agency, we’ve helped dozens of South Carolina families navigate the nanny hiring process smoothly and legally. In this blog, we’re sharing key challenges you need to know about before you hire your next nanny—and how to avoid the most common pitfalls.

1. South Carolina's Domestic Worker Laws Are Limited and Often Misunderstood

Unlike some other states, South Carolina does not have specific labor laws for domestic workers. That means many protections for nannies come from federal laws like the Fair Labor Standards Act (FLSA)—and families often overlook these entirely.

Here’s what many don’t realize:

• Nannies must be paid at least minimum wage, even if they live in your home.

• Overtime pay is required (1.5x regular pay for hours over 40/week).

• Nannies cannot be paid a “salary” unless their hours and responsibilities meet strict legal criteria.

• South Carolina has no mandatory rest or meal break laws for domestic workers—meaning expectations around breaks should be clearly outlined in a nanny agreement.

Why it matters: Misunderstanding the law can lead to legal disputes, IRS penalties, or losing a great nanny who feels undervalued.

2. Tax and Payroll Responsibilities Are Often Ignored

One of the most common issues we see in South Carolina is families accidentally (or intentionally) misclassifying nannies as independent contractors to avoid taxes.

But here's the truth:

✅ Your nanny is a household employee, not a contractor.❌ You cannot just write them a check or pay “under the table.”

As a household employer, you are required to:

• Withhold Social Security and Medicare taxes.

• Pay the employer portion of these taxes.

• Pay federal and South Carolina state unemployment insurance.

• File a W-2 for your nanny each year.

• Register as a household employer with South Carolina Department of Employment and Workforce (SCDEW).

The risk: If caught, you could face back taxes, fines, and legal consequences. It's not worth the shortcut.

Pro tip: Consider using a nanny payroll service or work with a nanny agency like ours that partners with trusted payroll providers.

3. Background Checks Are Often Skipped or Done Poorly

In South Carolina, there’s no law requiring background checks for privately hired nannies. Unfortunately, many families skip this step or rely on minimal research, like a quick Google search or social media scan.

What you should be doing:

• National criminal background check

• South Carolina SLED check (State Law Enforcement Division)

• Sex offender registry check

• DMV record check (if driving is involved)

• Reference checks with past employers

Why it matters: Children are vulnerable, and you’re inviting someone into your private home. Trust must be earned—and verified.

At Lowcountry Nanny & Babysitting Agency, we conduct in-depth screenings and verify every credential and reference. Peace of mind is part of our placement guarantee.4

4. Insurance Gaps Can Leave Families Exposed

Most families are unaware that homeowner’s insurance does not cover injuries sustained by employees, including nannies. This creates serious financial risk.

Here’s what to consider:

• If your nanny slips and falls while on the job, you could be liable.

• South Carolina does not require worker’s compensation for domestic workers, but it is highly recommended.

• Without proper coverage, your family could face out-of-pocket medical costs or lawsuits.

Solution: Look into an umbrella insurance policy, and consider adding a domestic worker’s compensation policy to protect yourself and your nanny.

5. Cultural Fit and Communication Matter More in the South

South Carolina families tend to value traditional family dynamics, religious practices, and respectful boundaries in their household staff. However, many families still overlook cultural fit when hiring a nanny.

Challenges may include:

• Differences in discipline styles

• Communication preferences (e.g., Southern politeness vs. directness)

• Religious or moral values

• Comfort with extended family involvement

These issues can strain the relationship over time, even if the nanny is technically “doing everything right.”

Tip: Use trial days and interviews that go beyond qualifications—look for shared values, parenting styles, and household expectations.

6. Vague Job Expectations Lead to Frustration

“Light housekeeping” means different things to different people.

Too many nanny-family conflicts arise from vague or unspoken expectations. A nanny may expect to focus entirely on childcare, while the family also expects help with laundry, dishes, and errands.

Always clarify:

• Job duties (childcare only or household help too?)

• Schedule and expected flexibility

• Use of personal phone during work hours

• Driving responsibilities

• Policies on discipline, food, screen time, etc.

At [Your Agency Name], we help families and nannies create custom job descriptions and written contracts to avoid confusion and protect both parties.

7. The Local Talent Pool Is Limited

South Carolina is growing, but compared to larger states like California or New York, there’s still a limited pool of professionally trained nannies—especially in smaller towns.

This leads to several issues:

• Rushed hiring due to desperation or lack of options

• Settling for less-qualified candidates

• Taking referrals from friends without proper vetting

How we help: As a local nanny agency, we maintain a curated roster of pre-screened, experienced nannies across the state. We do the recruiting and vetting, so you don’t have to settle for a quick fix.

Conclusion: Hire Smarter with Professional Support

Hiring a nanny in South Carolina is more complex than most families realize. From legal and tax requirements to safety checks and personality fit, every decision has long-term implications for your child’s safety and your family’s well-being.

Rather than navigating this alone, consider working with a local, experienced agency like Lowcountry Nanny & Babysitting Agency. We specialize in South Carolina placements and know how to match your family with a nanny who is not only qualified—but also aligned with your home values and parenting approach.

Need Help Hiring a Nanny in South Carolina?

At Lowcountry Nanny & Babysitting Agency, we’re here to simplify your journey—from screening and contracts to ongoing support. Contact us today for a free consultation, and let us help you find the perfect nanny with confidence.