Creating a Private Caregiver Contract Can Be a Legal Lifesaver

Going without a contract for a private hire is a risk. You are opening yourself up to potentially being sued or having to sue the caregiver and, without a written agreement, it will just be your word against theirs. Your oral agreement and handshake deal may not be enforceable in court. Having a contract, as a binding legal document, will protect the caregiver, your loved one and you.

A private caregiver contract

There’s a lot to think about when hiring a private caregiver. You’re basically becoming an employer, and it’s important to think like one. To get you started, consider these topics:

• The duration of the contract. Include when the caregiver is expected to begin work and for how long (biweekly, specific days and how many hours). If they are a live-in caregiver, you’ll need to address time off and vacation hours. I wouldn’t expect a caregiver to show up at the ER out of the kindness of their heart, like Peggy did for me, but ask if he or she can be available on off-hours or on an overtime basis if you could use additional help in emergency circumstances.

• Specified work hours and locations. Will the caregiver work in-home only or will the location of care change to meet the evolving needs of your loved one?

• Caregiver responsibilities. What tasks is the caregiver expected to handle? Give detailed descriptions of what services are going to be provided, like errands, food preparation, housekeeping, medication management or transportation.

• Payment obligations. Agree on the frequency and rate of payment. This should include how often and what method of payment you will use to compensate the caregiver. Remember: Taxes and Social Security need to be a part of the employment deal. Make sure you understand what must be withheld and paid.

• Live-in caregiver details. With increased costs of living affecting almost everyone, a live-in caregiver can reduce household expenses for the care receiver and provide low to no rent and a safe place to live for a person in need of a job. You’ll need to figure out if you’ll charge the caregiver room and board or roll it into their compensation. You may want a separate lease outside of the caregiver’s contract.

• How disputes are resolved. No one wants to end up in court. It’s expensive, time-consuming and stressful. Contracts can include mandatory arbitration or mediation language that would require everyone to try to resolve conflicts without suing each other.

• Liability. You’ll be entrusting your loved one with the caregiver and the caregiver will be entrusting you with having a safe place to work. Most contracts for services address liability for negligence (this means accidents that result in hurting someone). Are you going to require the caregiver to have their own insurance policy? You’ll need to review your own insurance to find out if you have coverage if something happens to the caregiver on the job.

• Termination of the contract. How do you plan to end the relationship if someone needs to make a change? You don’t want to be left in a lurch by a hire who doesn’t show up unexpectedly. Ask for written notice to stop employment and decide how far in advance you will want this notice.

• Flexibility. Circumstances can change quickly for a care recipient. Cookie bounced from home to skilled nursing to home to hospice. Peggy was there — and I needed her help — every step of the way. The caregiving contract should have flexible terms to account for the likely possibility that the care receiver’s needs are going to change.

When creating a caregiver contract, ask the private caregiver for their input to craft an agreement that is workable for everyone. There is no one-size-fits-all document for this. Every state has its own contract laws, and your contract will be as individual as your family’s needs.

You may be tempted to prepare the agreement yourself. Contracts are complex legal documents, and it’s always advisable to talk to professionals when entering into a contractual relationship. A lawyer, an insurance agent and an accountant can help figure out the best way to bring a private hire on board as part of your caregiving team. And hopefully, they will become an indispensable part of your caregiving success story and, like Peggy, a member of the family.