Was your nanny injured on the job? In New York State, you are required to have workers’ compensation insurance if you employ a nanny for at least 40 hours per week, or if you employ a live-in nanny.
Why is workers’ compensation important?
Besides coverage being the law in many states, here are four reasons why workers’ compensation is important in household employment.
1. Your nanny is protected
A nanny can receive financial help with medical expenses and lost wages under workers’ compensation if they are injured or get sick on the job. You never know when an injury might occur, whether it’s around the house, playing with the kids in the park, or even walking the dog. Unforeseen risks are always in play.
2. Your family is protected
If your employee is hurt on the job and you lack the required coverage, you are now open to a workers’ compensation claim and a potential lawsuit to recover lost wages and medical expenses. Even without the threat of a claim or litigation, you may feel compelled to help your nanny financially and that could mean thousands of dollars out of your pocket.
3. You avoid major fines and penalties
Non-compliance with your state’s workers’ comp requirements can be one of the biggest financial mistakes you can make as a household employer. A single work-related accident could leave you liable for tens of thousands of dollars in medical bills, lost wages, and state fines.
In New York State, for example, you could face a fine of up to $2,000 for every 10-day period of noncompliance. By the time you receive your first penalty notice, you could be on the hook for more than $12,000. Since workers’ compensation coverage needs to be in place on the first day of work for your employee, fines will start accumulating right away.
Additionally, the fine for a criminal conviction can cost you up to $50,000.
A workers’ compensation claim may also result in paying for all wage and medical benefits awarded to your employee and your legal representation required to defend against a workers’ compensation claim.
4. You maintain a positive relationship with your nanny
With a workers’ compensation policy in place, your nanny can feel assured that they will be compensated for their medical costs and lost wages. And you will maintain a good relationship with your employee. If you don’t have coverage and they need to file a workers’ compensation claim, that will most certainly put a strain on their employment if not end their time with your family. Now, on top of the financial hit your family will take, you need to find alternate childcare while you look for a new nanny.
What to do if your nanny is injured on the job
Should an injury or illness occur, here are the steps to take:
Contact your workers’ compensation carrier if there is an on the job injury or illness as a result of the employment. The seriousness of the injury does not necessarily matter. If the employee requires medical care or will be missing work due to the injury or work related illness, the employer should report the incident. Sometimes nothing further comes of the incident except a medical bill. However, there may be complications unknown at the time of the initial incident and reporting the claim can help to keep future bills in check.
Be prepared to provide the claim adjuster with some pertinent information:
- Date of incident
- Name of employee
- Brief description of the injury and how it happened
- Your workers’ compensation policy number
- Phone number or email address on how the adjuster can contact the employee
The adjuster will contact the employee directly for further details.
A form will be sent to the employee to complete. There will be a section for the employer to fill in their information and employment information, a section for the employee, and a section for the doctor to complete. The form is then returned to the insurance company.
The adjuster will continue to correspond with the employee and possibly the medical provider until the claim is complete.
Our partner GTM Payroll Services can provide workers’ compensation policies for household employers. Contact us at (518) 348-0400 for more information.