Workers' Compensation for Household Employees
Whether you're required to carry workers' compensation insurance for a household employee depends almost entirely on your state — some require it once you have any employee, others only above an hours or wage threshold, and some don't require it for household employers at all. There's no federal requirement.
Why this varies so much by state
Workers' compensation is a state-level insurance system, not a federal one, so household employer requirements are set state by state — and household employees are sometimes treated differently from other small-business employees within the same state's rules.
What workers' comp covers
If your employee is injured while working — a fall while cleaning, a back injury from lifting a child or a patient — workers' compensation insurance covers their medical bills and lost wages, and in most states, it's the ONLY route for a workplace injury claim (meaning your employee generally can't sue you separately if you're covered).
How to find out if you need it
- Check your state's specific requirement on our coverage page
- If required, most states let you buy a policy through a private insurance broker, sometimes bundled with homeowner's insurance riders
- Some household employer payroll services partner with brokers for quotes — worth asking if you're already working with one
What happens if you skip it where it's required
Beyond fines, going without required workers' comp coverage typically removes the liability protection it provides — meaning an injured employee could sue you directly for medical costs and lost wages, which is usually far more expensive than the premium would have been.
Frequently asked questions
Does my homeowner's insurance cover this instead?
Sometimes a rider can be added, but standard homeowner's or renter's insurance usually does not cover employee injuries by default — check with your insurer specifically.
Does Sadie sell or file workers' comp coverage?
No — Sadie doesn't sell insurance. We tell you what's typically required in your state and point you to check further; you'd purchase coverage through a broker or your state's program if needed.
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Get the payroll math right while you sort out coverage.
Sadie handles the tax calculations either way — pair it with the right workers' comp coverage for your state.
This guide is general information, not tax or legal advice. Rules vary by state and change over time — confirm anything specific to your situation with a licensed professional or your state's labor department.