Have been considering bringing my mom home to live with me and my family. I would want to employ a caregiver for her a few hours or more a week. I was wondering what kind of liability there could be if a paid caregiver was injured while caring for my mom. (i.e. back injury while lifting her, etc.; although she doesn't need to be lifted at present time) Also would like ideas about how to insure against this.

Just considering this and would like responses to the caregiver liability issue only. (I May start a new thread to help decide if it is best to bring her home.)

I think it would be wise to consult an attorney and/or your homeowners' insurance agent. You may, depending on how well you know the caregiver, want that person to be bonded or insured, too, if they aren't working for an agency, just in case they aren't as honest or as capable as you think they are..... Or you may just want to bypass all that and go through an agency, where, I'm sure, if the caregiver was injured on your property, it would fall under workers' compensation. There are so many scenarios, though, you really would be wise to talk to an attorney.

Ask the agency. Then ask them to send you any papers you would have to sign so you can look over them -- or have an attorney review them.

It's a very valid concern.

I don't want to use an agency because they are typically $25.00/hour in our area. I am looking at employing someone I would find independent from an agency. If anyone has dealt with this before, I would like your wisdom regarding liability issues.

Thanks to all.

Ask your insurance agent. The comment about workman's comp is interesting -- you would have to carry that, and it could be expensive.

Talking with a lawyer might be a good idea. I know that employing someone as an "independent contractor" can help to an extent, I don't know how much though.
I had independent people care for my Grandma a few times, but we have nothing to sue for, so if the caregiver would have injured herself, it would have been something that I really wouldn't have worried about.

You avoid workers comp if you pay the person as an independent contractor (gets a 1099 rather than a W-2), but then you get into a whole other bundle of regulations.

It's hard for me to see how a personal caregiver would fit the qualifications for an independent contractor (sets own schedule, takes no direction on work to be performed, etc. -- does not apply if you hire someone who is incorporated, such as you hire the agency and they send one of *their* employees). This creates as many problems as an injury if you were to be audited.

Rates differ from state to state, but I pay over $600 a year to cover two office employees who do no physical labor (such as lifting a patient) and do not drive in the course of their work.

If you think you want to avoid an agency, I encourage you to work out two sets of figures - one with and one without.

The agency one is easy -- how many hours per year times their rate.

The independent one is more complicated -- that many hours at your rate plus employer contributed FICA taxes plus unemployment tax plus workers comp policy and criminal background checks. (Homeowners insurance will generally not cover an in-home employee, but check with your agent.) If you decide to go this route, I would definitely recommend a payroll agency to prepare all the tax forms, do the proper deductions from the check, make the tax deposits, etc. Around here, that usually runs around $10 a paycheck. Penalities if you screw it up on your own are MUCH higher.

Then there is scrambling for a backup if this one quits.

Are you starting to see why the agencies charge as much as they do? I'm not saying don't do it -- just realize legally there's more than slipping a few $20s to someone. By asking about workers comp, you are already thinking through this issue. Hope this info helps think it further along.

I'm just wondering, how or why does this differ from hiring a babysitter for children? Would there still be a liability issue?

I'm assuming it's for a few hours a week and not a full time job.

I agree with Marvite. You probably need to check with your homeowners insurance agent. As far as taxes check on Nanny taxes. The one I found was from 2005 but there are dollar amounts that you have to meet before you have to pay unemployment taxes or withhold social security and income taxes. The site I found was $1400 per year or $1000 per quarter. This is why people do not deal with taxes for occasional babysitters but should for full-time nannys. Health aides were included under the nanny listing I found.

Interesting issue. I realized that I'm lucky in massachusetts since the state requires everyone to purchase health insurance (which is available at low cost to low income families). So the aides are covered if injured.

When you hire someone, you can check if they have health insurance. If they are, you can offer to pay some of the deductible or co-pay if they are injured on the job. (Discuss this if you are hiring someone for many hours/week).

Check with your home insurance to see what situations you are covered for such as if someone slips on your property,etc.

I know that most agencies that charge $25/hour DO NOT provide health insurance or sick days or unemployment insurance to their aides. I would be interested to know if they do cover injuries on the job.

You could also get info for you and the aide (maybe from OSHA-- Occupational Safety ) on how to move patients without injuring them or yourself. If the aide has CNA training, they will know about this.

Certain med supplies-- like a commode, a walker with a seat, a shower chair, a hospital bed, etc. can also help prevent injuries to LO or to your back.

If your family has lots of money or your LO does--if your LO still has to pay taxes-- (or if you're going to run for office), then I'd be diligent paying the nanny tax. If everyone is scrimping by, then you need to decide how best to stretch the available moneys.

I wanted to pay my aides social security but they wanted the monies now. Raising children on poverty wages, they needed to focus on the present.

I actually work for worker's compensation attorneys so I'll throw my two cents in here -

If anyone in your employ is injured in the "course and scope" of their employment it is a worker's compensation case. Doesn't matter whether you pay them under the table, or through payroll. Also doesn't matter if they have health insurance.

If they are injured "on the job" and relate this to the medical professionals, health insurance may not cover treatment - they will fight to have it covered by worker's compensation insurer.

If there is no worker's compensation insurance, an employer is severely penalized monetarily.

Each and every state has their own worker's compensation laws, but at least in Massachusetts this is how things stand.

Even though it is more costly to go through an agency, sometimes it's worth it.

Hope this helps some.

Patcor,

Sounds like most of us who try to save a buck, but in the end it costs us more then we anticipated.

I'm always concerned of having people on our property, as if they are hurt we're responsible for them. Hate to think we'd be open to lawsuits but we could be.

Best to cover all options and then make your decision.

Patcor

Thanks for your expertise...
How much does it cost to pay for an individual to pay for worker's comp insurance? Where/how would I purchase it?

And do you think that the agencies do offer it for their workers? I'm curious.. Sometimes companies get around it by calling worker self-employed.

brightwings -

I do not know the cost of the insurance - you would have to call an insurance company or agent. Most of the large insurance companies in this area have worker's compensation insurance.

Even if an "agency" doesn't carry worker's compensation insurance, if an employee can prove that they receive wages from the agency, the agency would be held liable. In Mass. we have what's known as a Trust Fund for uninsured employers. Every insurance company pays into it, BUT, when an uninsured employer is caught, there is heck to pay.

P.S. I should have mentioned that worker's compensation is a wage replacement system. There is no "pain and suffering" claims involved. So the monetary value is limited in that regard.

I just had an interesting talk with the director of Newton/Canton Visiting Angels. (Friends had used this agency for their parents). They charge $23/hour. All of their aides have at least 3 years experience working with elderly.

He said that his agency pays for workers comp but that there are agencies that are set up so they do not pay for it. (There are agencies that claim to be just "connecting" you with the aide so their prices are somewhat lower.)

So it's crucial to specifically check with an agency whether they pay into workers comp.

In Mass now, larger employers are required by law to pay for health insurance for workers. His company pays half the monthly premium for staff or for aides. Most agencies in other parts of the country do not offer health insurance to workers.

He also gives aides paid sick days (He said the recent flu epidemic made them institute this policy since they don't aides showing up when they're ill. He said it's been a very successful policy--but most agencies do not offer this...)

He said to check with you insurance agency whether someone who works in your home is covered by workers comp. If you pay someone "under the table" and they're injured in your home, you may be responsible for their lost wages as well as for medical bills.

Never thought about this issue... We learn and learn...

I'll report back when I find out more about the costs of purchasing workers' comp.

Thanks to all for the good responses and information.

brightwings -

Good info you found out. I'll offer a little bit more for you which may just bring up more questions than answers.

I asked one of the attorneys and he said worker's comp insurance premiums are based upon your "payroll".

If you are paying "under the table" you may not qualify to purchase it. If you have to put folks on payroll, you have to deal with the whole issue of taxes, FICA, etc.

In Mass. employers are required by law to carry worker's comp - hence the problems if you're caught without it.

I'll be curious to hear what you find out. Good luck!

quote:

He said to check with you insurance agency whether someone who works in your home is covered by workers comp

Whoops-- I meant to write "check with your insurance agency to see whether someone who works in your home would be covered by your current home insurance policy." (for instance if they slipped while lifting your LO)

Back to "liability." When the retirement community where my DE (dear employer) lives decided to require $500,000 liability insurance for any independent contractors, my sweet LO was going to pay for mine. After research, I found I could get it on me personally and use it anywhere I worked for about $700/year. But a little more investigation with her insurance company let us add $500,000 liability to her homeowner's policy for $80/year. I was happy to learn, when we had to eventually go to 24 hour care, that each caregiver is blanketed under this same policy, but only when working for my LO.

I'm sort of an acting daughter with her kids backing me up. 18 years in many capacities, only the last 4 or 5 dealing with dementia. I hire all our caregivers (there are 4 besides me, all independents).

Teri