Understanding Workers' Compensation for Au Pairs in Colorado

Quick Answer: Does Colorado Require Workers' Compensation for Au Pairs?

In Colorado, an au pair is considered a domestic employee, so the host family must provide workers' compensation coverage if the au pair is injured on the job. The coverage must meet state minimums, include medical expenses, wage replacement, and disability benefits. Families can obtain coverage through a private insurer, a state-sponsored program, or an employer‑of‑record service that bundles payroll and insurance.

What Is Workers' Compensation?

Workers' compensation is a state‑mandated insurance program that provides wage‑replacement and medical benefits to employees who suffer work‑related injuries or illnesses. In exchange, employees generally give up the right to sue their employer for negligence.

Legal Definition of an Au Pair in Colorado

Colorado law classifies an au pair as a "domestic employee" under the Colorado Wage Act. This classification triggers the same insurance obligations that apply to other household workers, such as nannies, housekeepers, and caregivers.

Eligibility Requirements for Coverage

To be covered, the au pair must meet three criteria:

• Be employed by the host family (or a sponsoring agency that acts as employer of record).
• Perform job duties that are considered work, such as childcare, light housekeeping, or transportation of children.
• Be working in Colorado for a minimum of 20 hours per week (the state's threshold for workers' comp eligibility for domestic workers).

How to Secure Workers' Compensation for an Au Pair

Host families have three main options:

1. Private Insurance Policies

Many insurers offer policies tailored to household employees. These policies typically cost $250‑$500 per year per au pair and include:

• Medical expense coverage up to $100,000.
• Wage replacement at 66% of the au pair's weekly earnings, up to state limits.
• Disability benefits for temporary or permanent impairments.

2. Colorado Workers' Compensation Fund

The state runs a voluntary fund for small employers, including households. Enrollment is simple online, and premiums are based on payroll.

3. Employer‑of‑Record Services

Some au pair agencies act as the legal employer, handling payroll, tax withholding, and workers' comp. This can be the easiest route for families unfamiliar with insurance paperwork.

Cost Estimates and Premium Factors

Premiums vary by:

• Annual salary paid to the au pair (typically $23,000‑$30,000).
• Claims history of the host family.
• Chosen coverage limits.

Employer Responsibilities

Colorado law requires host families to:

• Maintain continuous workers' compensation coverage for the entire duration of the au pair's employment.
• Report any work‑related injury to the insurer within 30 days.
• Provide a safe working environment and proper training for tasks such as lifting children or using household equipment.

Steps to File a Workers' Compensation Claim

If an au pair is injured, follow these steps:

Common Misconceptions

Many families assume that because an au pair is a cultural exchange participant, they are exempt from workers' comp. Colorado law does not make that exemption; the domestic‑employee classification overrides the exchange program status.

Another myth is that a personal health insurance plan can replace workers' compensation. Personal health coverage can pay for medical bills but does not provide wage replacement or protect the host from liability.

Impact of Not Having Coverage

Failing to maintain workers' compensation can result in:

• Fines ranging from $500 to $5,000 per violation.
• Potential civil lawsuits if the au pair pursues damages.
• Loss of eligibility for certain tax benefits tied to employing a domestic worker.

Resources and Further Reading

For detailed guidance, consult:

• Colorado Department of Labor and Employment – Workers' Compensation Division.
• Colorado Revised Statutes, Title 8, Article 5 (Domestic Employees).
• National Domestic Workers Alliance (NDWA) – Best practices for household employers.