Protect Yourself and Your Nanny or Household Employees
If you hire a nanny, household employee, or home healthcare employee to care for a family member or your children, you need to consider workers’ compensation insurance. As soon as you hire someone to work in your home, your home is a “workplace” and injuries that occur there are your responsibility. The safest way to protect yourself financially and legally is to get a workers’ compensation policy.
In California, the law requires that anyone who employs one or more full-time or part-time household employees must have workers’ compensation insurance. For this purpose, the worker must have worked 52 hours or more in the 90 days prior to an injury to receive benefits. (52 hours or more per quarter constitutes the need for coverage.) Many homeowner’s insurance policies can be amended to include workers’ compensation. If your current policy does not allow for adding workers’ comp, you can purchase the policy from a workers’ compensation insurance company. Be sure to comply with the legal requirements of minimum wage and tax withholdings if you are employing anyone full-time and insuring them in California.
Domestic Employees and Work Injuries
There are many instances where a workers’ compensation policy would cover an injury or illness that happens under your employment.
Examples of workers’ compensation covered injuries are:
- Your nanny is picking up your children from school and is in a car accident. Her medical care and any subsequent medical bills, physical therapy, or after care would be covered by workers’ compensation.
- Your mother-in-law lives with you and requires in-home care several days a week. Her caregiver catches your mother-in-law during a fall and subsequently sprains her wrist as she lands. Her exam and medical treatment are covered by workers’ compensation.
- Your full-time housekeeper is cleaning the floor and slips, hitting her head. You take her to the emergency room to make sure that she is okay. Workers’ compensation should cover the visit.
These examples are just a few ways that workers’ compensation insurance would protect you from potential financial expenses and protect your employee from paying out of pocket. Knowing that he or she is covered provides peace of mind for both homeowner and employee.
What Counts as a Household Employee in California?
Workers’ compensation insurance for household employees isn’t limited to full-time nannies. California law treats anyone who regularly works in your home — a housekeeper, cook, gardener, personal assistant, or live-in caregiver — as a potential employee once they cross the 52-hour or $100 wage threshold in a 90-day period. If you’re asking whether you need workers comp for household employees, the honest answer is: if your home is their regular workplace, you very likely do. Misclassifying a household worker as an independent contractor doesn’t remove this obligation; the Employment Development Department and the Division of Labor Standards Enforcement look at who controls the work — the schedule, the tasks, the tools — not what the arrangement is called.
Nanny Workers’ Compensation Insurance: What Parents Should Know
Nanny workers compensation insurance is one of the most commonly overlooked protections California parents carry — or fail to carry. Because a nanny is almost always classified as an employee rather than a contractor (parents typically control the schedule, the child’s routine, and how the work is performed), the same rules that apply to any household employer apply here. Coverage typically costs between $300 and $800 per year for a standalone policy, or as little as $100 to $300 per year if your homeowner’s insurance allows a workers’ compensation endorsement — an option unique to California and New Jersey. Without it, a single injury — a car accident during a school pickup, a fall while carrying a child, a repetitive-strain injury — can leave you personally responsible for medical bills and lost wages, and it can expose you to a stop order and penalties from the state.
Home Health Care Workers’ Compensation Insurance for In-Home Caregivers
Families who bring in-home care for an aging parent, a spouse recovering from surgery, or a family member with a disability face the same legal obligations as families who hire a nanny. Home health care workers compensation insurance covers caregivers who assist with lifting, bathing, mobility, and daily tasks — work that carries a real risk of back injuries, falls, and strain injuries for the caregiver. If your mother-in-law’s caregiver is injured helping her in and out of a chair, or a home health aide slips on a wet bathroom floor, workers’ compensation is what pays for that treatment instead of your homeowner’s liability policy, which is not designed to cover employees.
Do I Need Workers Compensation Insurance for Family Members?
This question comes up often, and the answer requires some care. California generally requires workers’ compensation coverage for household employees, including in some circumstances workers who are family members receiving wages for their labor. However, California law also recognizes certain exclusions for work performed by a parent, spouse, or child within the household, depending on the relationship and the nature of the arrangement. Because misclassifying a family member — or assuming an exclusion applies when it doesn’t — can leave you both uninsured and out of compliance, this is exactly the kind of question worth confirming with a workers’ compensation attorney before an injury happens, not after.
FAQs
Do I Need Workers Compensation Insurance for Household Employees in California?
Yes. If a nanny, housekeeper, caregiver, or other household worker works 52 hours or more, or earns $100 or more, in the 90 days before an injury, California law requires you to carry workers’ compensation coverage for them, whether they work full-time or part-time.
What Is Nanny Workers Compensation Insurance and Why Do I Need It?
Nanny workers compensation insurance pays for a nanny’s medical treatment and a portion of lost wages if she’s injured on the job — for example, in a car accident while driving your children or after a fall at your home. Without it, you’re personally liable for those costs and exposed to state penalties.
Does Home Health Care Workers Compensation Insurance Cover In-Home Caregivers?
Yes. If you employ a home health care worker or caregiver to assist a family member with daily activities, that caregiver is generally treated as a household employee under California law, and the same workers’ compensation requirements apply as they would for a nanny or housekeeper.
Do I Need Workers Compensation Insurance for Family Members Who Work in My Home?
It depends on the relationship and the arrangement. California recognizes limited exclusions for work performed by a parent, spouse, or child, but the rules are fact-specific and easy to misapply. Speak with a workers’ compensation attorney before assuming a family exclusion applies to your situation.
How Much Does Workers Comp for Household Employees Cost in California?
A standalone policy typically runs $300 to $800 per year, depending on your employee’s wages and hours. If your homeowner’s insurer offers a workers’ compensation endorsement, adding coverage that way can cost as little as $100 to $300 per year.
What Happens if I Don’t Have Workers’ Comp for My Household Employee?
The Division of Labor Standards Enforcement can issue a stop order barring you from using employee labor until you obtain coverage, and penalties can reach $1,500 or more per employee. You would also be personally responsible for all medical bills and lost wages if that employee is injured.
Can I Add Workers’ Comp Coverage to My Homeowner’s Insurance Policy?
In California, yes — many homeowner’s policies can be endorsed to include workers’ compensation for household employees. If your insurer doesn’t offer that option, you can purchase a standalone policy through a licensed workers’ compensation insurer or the State Compensation Insurance Fund.
Need Legal Advice? Call 818-946-0608.
If you have questions about your workers’ compensation policy choices, or need help filing a claim, contact our team. Our workers’ compensation attorneys at Wax & Wax, A Law Corporation have the knowledge, experience and legal understanding to provide detailed advice for your workers’ comp questions.
Contact our workers’ comp lawyers today at 818-946-0608.
