I just learned that it is illegal to pay a caregiver without a contract. After 3 months, what should I do?

Question: I recently hired a live-in caregiver. I have been paying her $1500 per month for three months now.
I just learned that it is illegal to pay her without having a legal contract between us (we don't).

At this point, what should I do?
Should I just continue paying her without a legal contract?
If I choose this option, what may happen down the road?
Or should I draw up and immediately put in force a legal contract?

Answers:
start a contract. you don't want any troubles. I made that mistake...

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