Hiring Household Staff

If you want to hire some additional help around the house to watch your children, clean, perform gardening tasks or cook, you have a lot of things to consider. In fact, if you wish to hire domestic help, you need to determine where to find assistance, what your insurance needs are, and how to fulfill your legal obligations. Here is what you need to know.

Hiring a Service Agency

• Check references to verify the company’s reliability before hiring them.
• Consult your local Better Business Bureau (BBB) for complaints filed against the company.
• Ask the company how they conduct background checks on the help they provide.
• Ask to see proof of insurance in case your property is damaged by their hired help.

Hiring Household Help Through an Agency

• Check the agency’s background and the BBB for complaints.
• Inquire about the fees charged to you for using the agency’s services.
• Determine how the agency will work with you to find the necessary help that you need. Also, determine how the agency will work with you if the candidate they select is not a good fit for your family.
• Determine how the agency screens its potential candidates.
• Insist that candidates are individually interviewed, have their references checked, and have their criminal and driving records investigated.
• Determine whether your chosen candidate can legally work in the United States.
• If the agency acts as a professional employer organization, confirm the agency provides workers' compensation and employment practices coverage. Make sure the latter includes coverage for third parties.

Hiring Domestic Staff on Your Own

• Place an ad on local online job boards or ask family and friends for a recommendation.
• Screen and interview all potential candidates and check references, criminal backgrounds, driving records and green card status (if necessary) for all potential finalists. Check to see if your insurance company provides free background checks for domestic employees.
• Contact your local police department for more information on obtaining a criminal background check and driving record.

Legal Obligations of Hiring Domestic Help

You have several legal obligations once you have hired someone on your own. You must first confirm that the person can legally work in the U.S. Then, once they are hired, you must pay taxes on their wages. The IRS produces the Household Employer’s Tax Guide to provide all the necessary information.

Don’t Forget About Insurance

In addition to taking care of your legal obligations, don’t forget to consult with your insurance broker. Determine whether your homeowners insurance policy covers workers’ compensation in case your hired help gets injured on the job. In most states, workers’ compensation is excluded from homeowners coverage. Click here to see if your state requires workers' compensation for domestic employees.

In every state, hiring a domestic employee creates employment practice exposures. These include wrongful termination, harassment, discrimination and creating a hostile work environment, among others.

Contact Hylant today to learn more.

Related Reading: Liabilities of Renting Your Home

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.