Domestic Workers
Labor protections for household employees in California, including nannies, housekeepers, and caregivers, covering overtime, minimum wage, and meal and rest breaks.
What Are Domestic Workers?
Domestic workers are employees who perform services in a private household, including nannies, housekeepers, home care aides, caregivers, and personal attendants. In California, domestic workers have significant labor protections under the California Domestic Worker Bill of Rights and other state and federal laws.
California has an estimated 300,000 domestic workers, many of whom work in vulnerable conditions. Understanding the legal requirements helps household employers comply with the law and ensures domestic workers receive fair treatment.
Types of Domestic Workers
Covered Domestic Positions
| Position | Typical Duties |
|---|---|
| Nanny | Childcare, child-related household tasks |
| Housekeeper | Cleaning, laundry, household maintenance |
| Home health aide | Personal care, health monitoring |
| Caregiver | Elder care, assistance with daily activities |
| Personal attendant | Care for elderly or disabled individuals |
| Cook | Meal preparation for household |
| Butler | Household management, service |
| Driver | Transportation for household members |
| Gardener | Landscaping and yard maintenance |
| Live-in employee | Any domestic work with residence provided |
Independent Contractor vs. Employee
Most domestic workers are employees, not independent contractors. Key factors:
| Factor | Employee | Independent Contractor |
|---|---|---|
| Control | Employer directs work | Worker controls methods |
| Schedule | Set by employer | Set by worker |
| Equipment | Employer provides | Worker provides |
| Location | Employer's home | Various locations |
| Clients | Single household | Multiple clients |
Important: The ABC test under AB 5 makes most domestic workers employees. Misclassification results in significant liability.
Minimum Wage Requirements
Domestic workers must receive at least California's minimum wage.
Current Rates
| Year | State Minimum Wage |
|---|---|
| 2024 | $16.00/hour |
| 2025 | $16.50/hour |
Live-In Employee Considerations
For live-in employees, employers may credit certain amounts against wages for room and board, but cannot reduce compensation below minimum wage.
| Credit Type | Maximum Amount (2024) |
|---|---|
| Room (single occupancy) | Varies by IWC order |
| Meals | $5.66 per meal |
| Room and meals | Subject to limits |
Cash Payment Issues
Paying domestic workers in cash creates problems:
- No proof of payment for either party
- Tax violations for employer and employee
- No workers' compensation protection
- Wage claim exposure
Overtime Rules for Domestic Workers
California's domestic worker overtime rules depend on the worker's classification and living arrangement.
Personal Attendants (Caregivers)
Under the Domestic Worker Bill of Rights (AB 241/SB 1015):
| Hours | Rate |
|---|---|
| First 9 hours per day | Regular rate |
| Over 9 hours per day | 1.5× (overtime) |
| Over 45 hours per week | 1.5× (overtime) |
Note: This applies to "personal attendants" who spend more than 80% of their time on care duties.
Other Domestic Workers (Housekeepers, Nannies, etc.)
Standard California overtime rules apply:
| Hours | Rate |
|---|---|
| First 8 hours per day | Regular rate |
| Hours 8-12 per day | 1.5× (time-and-a-half) |
| Over 12 hours per day | 2× (double-time) |
| Over 40 hours per week | 1.5× |
| 7th consecutive day (first 8 hours) | 1.5× |
| 7th consecutive day (over 8 hours) | 2× |
Live-In Employee Overtime
Live-in domestic workers have modified overtime rules:
| Hours | Rate |
|---|---|
| First 9 hours per day | Regular rate |
| Over 9 hours per day | 1.5× |
| First 45 hours per week | Regular rate |
| Over 45 hours per week | 1.5× |
Double-time provisions do not apply to live-in employees.
Meal and Rest Breaks
Domestic workers are entitled to meal and rest breaks, with some variations.
Rest Breaks
| Hours Worked | Rest Breaks |
|---|---|
| 3.5-6 hours | One 10-minute paid break |
| 6-10 hours | Two 10-minute paid breaks |
| 10-14 hours | Three 10-minute paid breaks |
Rest breaks should be:
- In the middle of each 4-hour period when practicable
- Paid at the regular rate
- Uninterrupted
Meal Breaks
| Hours Worked | Meal Breaks |
|---|---|
| Over 5 hours | One 30-minute unpaid break (by 5th hour) |
| Over 10 hours | Second 30-minute unpaid break (by 10th hour) |
Personal Attendants Exception
Personal attendants (caregivers) working in private homes may have their meal and rest breaks interrupted if the nature of work requires it, but they must still be paid for that time.
Live-In Employee Breaks
Live-in employees must receive:
- At least 3 hours of uninterrupted sleep
- Sleeping facilities
- Must be compensated if sleep is interrupted for work
Break Violation Penalties
For each missed meal or rest break:
- 1 hour of pay at the regular rate
- Maximum: 2 hours additional pay per day
The Domestic Worker Bill of Rights
California's Domestic Worker Bill of Rights (AB 241 and SB 1015) provides essential protections.
Key Provisions
| Protection | Details |
|---|---|
| Overtime pay | Personal attendants get OT after 9 hrs/day or 45 hrs/week |
| Meal breaks | Required with limited exceptions |
| Rest breaks | Required for all domestic workers |
| Anti-retaliation | Cannot be fired for exercising rights |
| Sick leave | Covered under state sick leave law |
Coverage
The Bill of Rights applies to:
- Personal attendants working in private households
- Employees who provide care for elderly, disabled, or ill individuals
- Caregivers for children with medical needs
Household Employer Obligations
Hiring a domestic worker makes the household a legal employer with significant obligations.
Tax Obligations
| Requirement | Threshold | Details |
|---|---|---|
| Federal income tax withholding | Any amount | If worker requests |
| Social Security & Medicare | $2,700+/year (2024) | Employer pays half |
| Federal unemployment (FUTA) | $1,000+/quarter | Employer pays 6% of first $7,000 |
| CA State Disability Insurance | $750+/quarter | Withhold from wages |
| CA unemployment (UI) | $750+/quarter | Employer contribution |
| CA Employment Training Tax | $750+/quarter | Employer contribution |
Registration Requirements
Household employers must:
- Obtain EIN from IRS
- Register with EDD as California employer
- Maintain workers' compensation insurance
- Post required workplace notices
- File quarterly tax returns
Workers' Compensation
California requires workers' compensation insurance for all employees, including domestic workers.
| Option | Details |
|---|---|
| Traditional policy | Through insurance carrier |
| State Fund | California State Compensation Insurance Fund |
| PEO/Payroll service | Often includes coverage |
Failure to carry workers' comp:
- Personal liability for injuries
- Penalties up to $100,000
- Misdemeanor charges possible
Wage Statement and Recordkeeping
Household employers must provide written wage statements and maintain records.
Wage Statement Requirements
Each pay period, provide:
- Gross wages earned
- Total hours worked
- Net wages paid
- Pay period dates
- Employer name and address
- All deductions
Recordkeeping
Maintain for 4 years:
- Time records (start/end times, breaks)
- Pay records (hours, rate, gross/net)
- Employment agreements
- Tax records
- Workers' comp documentation
Paid Sick Leave
Domestic workers are entitled to California's paid sick leave.
Accrual and Use
| Aspect | Requirement |
|---|---|
| Accrual | 1 hour per 30 hours worked |
| Annual cap | At least 40 hours (or 5 days) |
| Use per year | At least 40 hours (or 5 days) |
| Carryover | May cap at 80 hours accrued |
| Rate of pay | Regular rate (or average for varying rates) |
Permitted Uses
- Worker's own health condition
- Care for family member
- Domestic violence, sexual assault, or stalking recovery
- Preventive care appointments
Written Employment Agreements
While not legally required, written agreements protect both parties.
Recommended Agreement Elements
| Section | Contents |
|---|---|
| Position and duties | Job title, specific responsibilities |
| Schedule | Days, hours, live-in arrangements |
| Compensation | Hourly rate, overtime rate, pay schedule |
| Benefits | Sick leave, vacation, holidays, room/board |
| Termination | Notice period, severance (if any) |
| House rules | Vehicle use, guests, phone, computer |
| Confidentiality | Privacy expectations |
Work Schedule Documentation
Clearly document:
- Regular working hours
- Expected weekly schedule
- On-call or overnight expectations
- Time tracking requirements
Live-In Domestic Workers
Live-in employees have specific rules and protections.
Defining Live-In Status
A live-in employee:
- Resides in the employer's home
- Has personal living quarters
- Works and lives at the same location
Special Considerations
| Topic | Rule |
|---|---|
| Sleeping time | May exclude up to 8 hours of sleep time (with agreement) |
| On-call at night | Compensable if sleep is frequently interrupted |
| Room value | Limited credit against wages |
| Time off | Must have at least one day off per week |
| Privacy | Entitled to reasonable privacy in living quarters |
Hours Worked for Live-In Workers
Determining compensable time:
| Time Type | Compensable? |
|---|---|
| Actively working | Yes |
| Scheduled on-duty time | Yes |
| Uninterrupted sleep (up to 8 hrs) | No (if agreed) |
| Sleep interruptions | Yes |
| Personal time (off-duty, may leave) | No |
| "Waiting to be engaged" | Yes |
Common Compliance Issues
Failure to Pay Overtime
Problem: Treating domestic workers as exempt from overtime.
Reality: Most domestic workers are entitled to overtime, though thresholds may vary.
Misclassifying as Independent Contractor
Problem: Paying workers as 1099 contractors to avoid employer obligations.
Reality: Most domestic workers are employees under the ABC test. Misclassification exposes employers to:
- Back wages and overtime
- Tax penalties
- Benefits liability
- Legal fees
Not Paying for All Hours Worked
Problem: Not compensating for:
- Early arrival and late departure
- Time spent on errands
- Phone calls and texts while off-duty
- Travel between work locations
Reality: All time worked must be compensated.
No Workers' Compensation
Problem: Operating without workers' comp insurance.
Reality: Personal liability for any workplace injury plus penalties.
Technology and Payroll Solutions
Several services help household employers manage compliance:
Household Payroll Services
Benefits include:
- Automated tax calculations and filings
- Direct deposit processing
- Year-end W-2 preparation
- Workers' comp coordination
- Compliance reminders
Time Tracking
Mobile apps and simple systems help:
- Record actual hours worked
- Track break times
- Document schedule changes
- Create payroll-ready reports
Penalties for Non-Compliance
| Violation | Penalty |
|---|---|
| Minimum wage violation | Back pay + liquidated damages + penalties |
| Overtime violation | Back pay + interest + penalties |
| Missed breaks | 1 hour per day per violation |
| Wage statement violation | $50-$4,000 per violation |
| No workers' comp | Personal liability + up to $100,000 fine |
| Tax violations | Back taxes + penalties + interest |
| Retaliation | Reinstatement + back pay + damages |
Resources for Household Employers
| Resource | Purpose |
|---|---|
| California EDD | Employer registration, tax information |
| DIR (Labor Commissioner) | Wage and hour regulations |
| IRS Publication 926 | Household employer's tax guide |
| California State Fund | Workers' compensation options |
| Nanny payroll services | Compliance management |
Employing domestic workers comes with significant legal obligations, but proper compliance protects both the employer and the worker while building a fair employment relationship.
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