Do you employ a nanny in New York?  Don’t forget workers’ compensation coverage for your nanny.

Under New York law, if you employ a nanny who works more than 40 hours a week, you’re obligated as an employer to pay for workers’ compensation insurance covering the nanny.  This is true even if you’re paying your nanny under the table.  You can obtain coverage from a private carrier or the New York State Insurance fund, which is a nonprofit agency of the state.

What happens if you don’t have coverage and your nanny is injured on the job?  Big trouble.  You’ll be liable for the nanny’s medical bills, lost time, and fines. Given that a policy is usually $500 or less per year, the risk is simply not worth it, nor is it fair to your nanny.

When hiring your nanny, remember to have him or her sign a good nanny contract on or before the first day of work. The nanny contract should include a provision addressing workers’ compensation.