Anonymous wrote:I would be more concerned with the fact that she is possibly lying to you.
This. This is deeply problematic given the context you now have (that two previous employers complained of this--and presumably, to the nanny as well as to the agency).
I would honestly look for a new nanny, however wonderful she may be. And I would be asking the agency for the fee back. I don't disagree with the PP about the shame of addiction and issues with hiding it, but if losing two jobs where this was a factor has not prompted a change in behavior, I don't think it's likely that it will magically get fixed now. Absolutely I wouldn't want my child riding in the car of a smoker given the thirdhand smoke research.
The smoking (however occasional) + lying combination would make this a dealbreaker for me.