Caregivers and credentials
Workers' compensation for caregivers
Workers' compensation is insurance that pays medical costs and part of lost wages when an employee is hurt at work or gets a work-related illness. States run most programs for private employers. Rules on who must carry coverage and who counts as an employee differ by state.
Why it matters for your family
Caregiving can cause injuries, such as a back strain while helping someone stand. When an agency employs the caregiver, the agency generally carries the workers' compensation coverage. When a family hires someone directly, the family may be a household employer, and state rules decide whether coverage is required. The U.S. Department of Labor points private-sector workers to their state workers' compensation board. A common mistake is to assume a homeowner's policy covers a worker's injury. Ask the insurer before the first shift. An elder law attorney or the state board can explain the rules for a specific state.
Source: dol.gov
Read more: How to Get Started with Hiring In-Home Care
Related terms
- Bonded and insured caregiverA bonded and insured caregiver works for a business that carries a bond and liability insurance.
- Household employer and nanny taxA household employer is a person who pays someone to work in or around their home and controls how the work is done.
- W-2 employee versus 1099 contractorA W-2 employee works under the employer's direction and has taxes withheld by the employer.
- Private duty caregiverA private duty caregiver is a non-medical caregiver paid directly by the family or through an agency to provide one-on-one help at home.
- Home care agencyA home care agency is a company that employs or contracts caregivers and sends them to clients' homes.
- Elder law attorneyAn elder law attorney is a lawyer who focuses on legal issues of older adults.
