As families navigate their busy schedules, they are opting to employ workers to care for their children & family members and to handle household issues, which includes persons like housekeepers, house managers and cooks. While this allows families flexibility to meet professional and personal needs, it is critical for families to structure their relationship with household employees in a California labor law compliant manner.
When you employ an individual to work in the home, such as a nanny or caregiver, this creates an employment relationship between you and the individual. Even if you only hire one person you, can be considered a household employer; and possibly a joint employer even if you hire someone through a caregiver or staffing agency.
What does it mean to be a household employer?
When you hire an individual to work in your home, you are subject to California labor law requirements. This includes requirements to maintain workers compensation, compliance with wage & hour requirements and certain tax requirements. It is important to note that wage & hour requirements may differ depending on the type of household employee you hire. For example, there are different overtime requirements for a live-in employee v. a non-live-in employee.
Families should work with counsel experienced with these unique household staff and the legal implications before hiring such individuals to avoid liability. Failure to comply with proper legal requirements, including or misclassifying a household employee as a contractor amongst other pay issues, can impose significant penalties against the family and could result in prolonged and costly litigation.
The material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-881-3021.