A caregiver contract (personal care agreement) defines duties (personal care, meal prep, transportation, medication reminders — not skilled nursing), the schedule, and pay at typically $18–$35/hour. Directly hired caregivers are household employees under IRS rules: above $2,800/year (2026) the family owes Social Security/Medicare withholding, and FLSA overtime applies to most live-out caregivers after 40 hours. For families paying a relative, a written agreement signed before payments begin is essential for Medicaid look-back compliance — informal payments to family are treated as gifts that delay eligibility.
Caregiver Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Caregiver agreements do double duty: they organize the daily reality of care — who does what, on what schedule, for what pay — and they create the paper trail...
Part of our free contract template library — 75+ agreements in Word and PDF, ready to customize and sign.
Full template text
CAREGIVER AGREEMENT
This Caregiver Agreement ("Agreement") is entered into as of [Date] by and between:
Care Recipient / Representative: [Full Name], residing at [Address], Phone: [Phone Number], acting [individually / as [Power of Attorney / Legal Guardian] for [Care Recipient Name]] ("Client")
Caregiver: [Full Name], residing at [Address], Phone: [Phone Number], Email: [Email] ("Caregiver")
1. Care Recipient Information
Name: [Full Name]
Date of Birth: [DOB]
Address: [Address where care will be provided]
Primary Physician: [Name], [Phone Number]
Medical Conditions: [List relevant conditions]
Allergies: [List or "None"]
2. Scope of Services
The Caregiver agrees to provide the following services:
a) Personal Care: Assist with bathing, grooming, dressing, toileting, and oral hygiene.
b) Mobility Assistance: Help with transfers, walking, wheelchair use, and fall prevention.
c) Meal Preparation: Plan and prepare meals in accordance with dietary restrictions and physician recommendations.
d) Medication Reminders: Remind the Care Recipient to take prescribed medications at scheduled times. [If applicable: Administer medications as directed by the physician with proper documentation.]
e) Light Housekeeping: Maintain cleanliness in the Care Recipient's living areas, including laundry, dishes, vacuuming, and changing bed linens.
f) Transportation: Drive the Care Recipient to medical appointments, errands, and social activities using [Caregiver's vehicle / Client's vehicle / public transportation].
g) Companionship: Provide social interaction, engage in activities, and accompany the Care Recipient on outings.
h) Health Monitoring: Observe and report changes in the Care Recipient's physical or mental condition to the Client and/or physician.
i) Record Keeping: Maintain a daily log of care activities, meals, medications, and any incidents.
j) [Additional duties: _______________]
The Caregiver shall NOT perform the following: [e.g., administer injections, perform wound care, lift the Care Recipient without mechanical assistance, provide skilled nursing care].
3. Schedule
a) Regular Schedule: [e.g., Monday through Friday, 8:00 AM to 5:00 PM].
b) Total Hours: Approximately [Number] hours per week.
c) Overnight Care: [Required / Not required]. If required, overnight hours are from [Time] to [Time] and are compensated at $[Amount] per night.
d) The schedule may be modified by mutual written agreement.
4. Compensation
a) Rate: $[Amount] per [hour / day / week / month].
b) Overtime: Hours exceeding [40] per week shall be compensated at [1.5x] the regular rate.
c) Holiday Pay: Work performed on designated holidays shall be compensated at [1.5x / 2x] the regular rate.
d) Payment Schedule: [Weekly / Bi-weekly / Monthly], paid via [check / direct deposit / cash].
e) Mileage Reimbursement: The Caregiver shall be reimbursed at $[Amount] per mile for transportation provided using the Caregiver's personal vehicle.
5. Employment Classification and Taxes
a) The Caregiver is classified as a [household employee / independent contractor].
b) If classified as a household employee, the Client shall withhold applicable federal and state taxes, Social Security, and Medicare, and shall provide a W-2 by January 31 of each year.
c) If classified as an independent contractor, the Caregiver is solely responsible for all tax obligations, and the Client shall provide a 1099 as required.
6. Benefits
a) Paid Time Off: [Number] days per year, accrued at [Rate].
b) Sick Leave: [Number] days per year.
c) Health Insurance: [Provided / Not provided. If provided: The Client shall contribute $[Amount] per month].
d) Other: [e.g., meals during working hours, use of vehicle].
7. Emergency Procedures
a) In the event of a medical emergency, the Caregiver shall call 911 and then notify the Client immediately.
b) Emergency Contact 1: [Name], [Relationship], [Phone].
c) Emergency Contact 2: [Name], [Relationship], [Phone].
d) The Care Recipient's advance directives and healthcare proxy information are located at: [Location].
e) The Caregiver shall follow all advance directives and DNR orders as documented.
8. Medication Management
a) The Caregiver shall remind the Care Recipient to take medications as prescribed.
b) The Caregiver [is / is not] authorized to administer medications.
c) A current medication list, including dosages and schedules, shall be maintained in [Location] and updated by [Client / Physician].
d) The Caregiver shall document all medications taken or refused in the daily care log.
9. Confidentiality
The Caregiver agrees to maintain the confidentiality of all personal, medical, and financial information pertaining to the Care Recipient and the Client's family. The Caregiver shall not disclose any such information to third parties except as required by law or as necessary for the Care Recipient's medical treatment. This obligation survives the termination of this Agreement.
10. Liability and Insurance
a) The Caregiver agrees to perform services with reasonable care and skill.
b) The Client shall maintain homeowner's or renter's insurance covering injuries to household employees, or shall provide workers' compensation insurance as required by applicable law.
c) The Caregiver shall not be liable for injuries or health declines resulting from the Care Recipient's pre-existing conditions or the natural progression of illness.
d) If the Caregiver uses their personal vehicle, they shall maintain automobile insurance with a minimum coverage of $[Amount].
11. Termination
a) Either party may terminate this Agreement with [30 days'] written notice.
b) Upon termination, the Client shall pay the Caregiver for all services rendered, accrued time off, and outstanding expense reimbursements within [10] business days.
c) The Client may terminate immediately for cause, including neglect, abuse, theft, substance use while on duty, breach of confidentiality, or abandonment of the Care Recipient.
d) The Caregiver may terminate immediately if the work environment poses a risk to their health or safety.
12. Dispute Resolution
Disputes shall be resolved through good-faith negotiation. If unresolved within [30] days, the parties agree to mediation. If mediation fails, disputes shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association. This Agreement shall be governed by the laws of the State of [State].
13. Entire Agreement
This Agreement constitutes the entire understanding between the parties. Amendments must be in writing and signed by both parties. If any provision is found unenforceable, the remaining provisions shall continue in full force.
SIGNATURES
Client / Representative Signature: ___________________________ Date: _______________
Print Name: ___________________________
Caregiver Signature: ___________________________ Date: _______________
Print Name: ___________________________
Notary (if applicable): ___________________________ Date: _______________
- Hourly rate
- $18 – $35, region-dependent
- Household employee threshold
- $2,800/yr (IRS, 2026)
- Overtime
- 1.5× after 40 hrs (most live-out)
- Medicaid look-back
- 5 years; written agreement required
What your caregiver contract should cover
Care recipient and duties list
Personal care (bathing, dressing, mobility), meal preparation, light housekeeping, transportation, companionship, and medication reminders — listed item by item. Skilled nursing tasks (wound care, injections) are excluded unless the caregiver holds the license to perform them.
Schedule and hours
Days, shift times, and weekly hours — the foundation for both the budget and the overtime calculation. Live-in arrangements define sleep periods and how interrupted nights are compensated.
Compensation and pay frequency
The hourly rate ($18–$35 typical), payday schedule, and how hours get recorded. For paid-family arrangements, the rate must be at or below local market rates for equivalent care — above-market pay to a relative draws Medicaid scrutiny.
Employment classification and taxes
A directly hired caregiver working the family's schedule is a household employee, not a 1099 contractor. Above the IRS annual threshold ($2,800 in 2026), the family withholds and pays Social Security/Medicare; federal/state unemployment may also apply.
Overtime and rest rules
FLSA requires 1.5× pay after 40 hours for most live-out home care workers; live-in caregiver rules vary by state (California, New York, and others have stricter daily rules). The agreement should state the overtime calculation explicitly.
Documentation and care logs
A daily log of hours, tasks, and observations. For Medicaid planning, logs plus the signed agreement plus canceled checks are the proof that payments purchased care — the trio that survives a look-back review.
Emergency procedures and authorized contacts
Who gets called in what order, where medical information lives, and the caregiver's authority (or not) to consent to treatment. A healthcare proxy or POA holder should be named with contact details.
Time off, backup coverage, and termination
Paid/unpaid leave terms, who covers absences, and the notice period to end the arrangement (commonly 2–4 weeks). Care can't have gaps — the backup plan belongs in the contract.
Confidentiality and household rules
Medical and financial privacy, photography and social media limits, visitors, and use of the household car (with insurance confirmation) — the practical rules that prevent the awkward conversations.
Typical in-home caregiver rates and rules (U.S., 2026)
| Item | Typical range / rule | Notes |
|---|---|---|
| Hourly rate (non-medical) | $18 – $35 | Agency rates run $25 – $45 |
| Live-in (daily rate) | $200 – $350/day | State rules on sleep time vary |
| Overnight shift | $120 – $250 | Awake vs. sleeping rates differ |
| Household employee threshold | $2,800/year | IRS, 2026 — FICA applies above |
| Overtime | 1.5× after 40 hrs/week | Most live-out caregivers (FLSA) |
| Medicaid look-back | 5 years | Written agreement must predate payments |
Rates vary by region and care intensity. Employment-tax and live-in overtime rules differ by state — California and New York are notably stricter. For Medicaid planning, consult an elder-law attorney before signing.
How caregiver contracts work in practice
Directly hiring a caregiver
The family sets the schedule, the duties, and the supervision — which makes the caregiver a household employee under IRS rules regardless of what anyone prefers to call it. The agreement records the wage, the schedule, and the overtime rule; the family registers for household employment taxes (the 'nanny tax' machinery), withholds FICA above the threshold, and issues a W-2 in January. Done correctly it adds roughly 9–10% to the wage cost; done incorrectly it accumulates back taxes and penalties that surface at the worst time — often when the caregiver files for unemployment after the care recipient passes.
Paying a family member for care
When an adult child or relative provides paid care, the written agreement must exist before the first payment, set a market-rate wage, and pair with care logs and traceable payments. The reason is Medicaid's five-year look-back: payments to family without a pre-existing care agreement are presumed gifts, and gifts in the look-back window delay Medicaid eligibility when nursing-home care eventually becomes necessary. The agreement converts the same dollars from 'gift' to 'purchased care.' Elder-law attorneys draft these as 'personal care agreements,' sometimes with lump-sum life-expectancy calculations — get advice before structuring anything beyond simple hourly pay.
Live-in arrangements
Live-in care trades room and board plus a daily rate for availability, and it's where wage-and-hour mistakes concentrate. Federal rules let live-in employees' sleep and meal periods be excluded by agreement — but only with a genuine written agreement and only when sleep is actually uninterrupted; several states restrict exclusions further. The contract defines the workday, the sleep period, how interrupted nights convert to paid hours, and the value assigned to lodging — because back-pay claims for 24-hour liability are the largest dollar risk in home care.
Mistakes that weaken a caregiver contract
Paying a caregiver as a 1099 contractor
Control over schedule and duties makes a directly hired caregiver a household employee. The 1099 shortcut unravels at unemployment claims, injury claims, or audit — with the family owing back taxes plus penalties.
Paying family without a written agreement
Medicaid's look-back treats undocumented payments to relatives as gifts, delaying eligibility precisely when nursing-home costs hit. The agreement must be signed before payments start — retroactive paperwork doesn't cure it.
Ignoring overtime
Most live-out home care workers are owed 1.5× after 40 hours under FLSA, and a 60-hour care week is common. Pricing the schedule without overtime builds a wage claim into the arrangement.
Letting duties drift into skilled care
Medication administration, wound care, and injections need a license. A non-medical caregiver performing skilled tasks exposes everyone — define the boundary and route skilled needs to a home-health provider.
No care logs
Logs prove the care happened — for Medicaid review, for family transparency, and for the caregiver's own protection against accusations. A two-minute daily entry is the cheapest insurance in home care.
How to use this template
- 01
Download the caregiver contract template in Word or PDF.
- 02
List the duties precisely and exclude skilled-nursing tasks unless licensed.
- 03
Set the schedule, the hourly or daily rate at market level, and the overtime calculation.
- 04
State the household-employment arrangement and register for the applicable taxes.
- 05
Set up the daily care log and the emergency-contact procedure.
- 06
If paying a family member, have the agreement reviewed by an elder-law attorney and sign it before the first payment.
Skip this template if…
- Skilled home-health nursing — licensed clinical services run under provider agreements with care plans and physician orders.
- Agency-placed caregivers — the agency employs the caregiver; your contract is with the agency, not the individual.
FAQs
How much do in-home caregivers make?
Directly hired non-medical caregivers typically earn $18–$35 per hour depending on region and care intensity; agencies bill $25–$45 with the caregiver receiving part. Live-in arrangements commonly run $200–$350 per day plus room and board, with state rules governing sleep-time pay.
Is a caregiver an employee or independent contractor?
A caregiver you hire directly, schedule, and supervise is a household employee under IRS rules. Above $2,800 in annual wages (2026) you withhold and pay Social Security and Medicare, and you issue a W-2 — paying on a 1099 risks back taxes and penalties.
Why do I need a written agreement to pay a family caregiver?
Because of Medicaid's five-year look-back: payments to relatives without a pre-existing written care agreement are presumed gifts, which delay Medicaid eligibility when nursing-home care is needed. A signed agreement, market-rate pay, care logs, and traceable payments convert those dollars into documented purchased care.
Do caregivers get overtime?
Most live-out home care workers are entitled to 1.5× pay after 40 hours per week under the FLSA. Live-in caregiver rules vary by state — some allow sleep-period exclusions by written agreement, while states like California impose stricter daily overtime. The contract should state the calculation explicitly.
What duties can a non-medical caregiver perform?
Personal care (bathing, dressing, mobility, toileting), meal preparation, light housekeeping, transportation, companionship, and medication reminders. Administering medication, wound care, and injections are skilled tasks requiring a license — the agreement should draw that line and route skilled needs to home health.
What should be in a caregiver's daily log?
Hours worked, tasks performed, meals, medications reminded, and observations about the care recipient's condition. The log substantiates payroll, supports Medicaid documentation, protects the caregiver against disputes, and gives family members visibility — one short entry per shift is enough.
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