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Key Risks of Hiring a Private Caregiver

1. Becoming a Household Employer
   When you hire privately, you’re legally considered the caregiver’s employer. This entails:
   • Managing payroll and paying payroll taxes (Social Security, Medicare, unemployment).
   • Handling minimum wage, overtime, and tax obligations under IRS and Fair Labor Standards Act (FLSA) regulations. Failing to comply can result in civil—and sometimes criminal—penalties.Homework Solutions+11Springpoint At Home+11City-Data+11Luxe Home Care+9A Place for Mom+9Global One Home Care+9Homework Solutions
   • Paying “under the table” is illegal and can lead to tax evasion charges and legal consequences for both parties.Homework Solutions
2. Liability & Insurance Exposure
   • You’re responsible if the caregiver is injured on your property. Workers’ compensation may be required, and many homeowner policies don’t cover this.Homework Solutions+10Elder Law Attorney+10AgingCare+10
   • Without proper liability or theft insurance, you may be held liable for injuries, theft, or property damages.Elder Law Attorney
3. Insufficient Vetting & Background Screening
   • Without agency-level screening, caregivers may slip through with incomplete credentials, criminal records, or worse. Full background checks, ideally fingerprint-based and including registries, are difficult to conduct yourself.AgingCare+4Global One Home Care+4Luxe Home Care+4
4. Gaps in Care & Lack of Backup Support
   • If your caregiver is sick, unavailable, or quits, you’re left scrambling. There’s no agency to supply a substitute or manage scheduling emergencies.LeanOnWe+3A Place for Mom+3Luxe Home Care+3
5. Boundary Slips & Financial Exploitation
   • Without oversight and supervision (such as from an RN via an agency), caregivers may overstep boundaries or escalate rates when families are vulnerable.Springpoint At Home
6. Legal Vulnerabilities & Dispute Potential
   • Conflicts over pay, schedules, or termination can escalate. As the employer, you may face legal disputes, including accusations of harassment or wrongful termination.LeanOnWe+2AgingCare+2
7. Difficulty Managing Job Expectations
   • Misaligned expectations around duties, schedules, breaks, or benefits can lead to frustration and subpar care.Fink Rosner Ershow-Levenberg Marinaro+11LeanOnWe+11Luxe Home Care+11

New Jersey–Specific Legal Requirements

As of July 2024, New Jersey’s Domestic Worker Bill of Rights (S‑723/A‑822) imposes several mandates on any hiring entity—including individuals—who employ domestic workers for more than 5 hours per month:

• A written contract detailing duties, pay (including overtime), schedule, breaks, sleeping time, leave, termination notice, and the value of housing provided must be in place.Fink Rosner Ershow-Levenberg Marinaro
• Caregivers are entitled to a 30-minute paid meal break every five hours.
• Live-in caregivers must have at least a full 24-hour rest period after six consecutive working days.
• Notice of termination: at least two weeks for regular staff, four weeks for live-ins, unless there’s no practical need for the position.
• Employers cannot threaten to report immigration status if rights are asserted, and an adverse action within 90 days may be deemed retaliatory.Fink Rosner Ershow-Levenberg Marinaro+1

Failing to adhere to these can lead to penalties and disputes under NJ law.