Selecting a caregiver for your loved one is a deeply personal and important decision. If you’re thinking about finding help through NextDoor or from talking with friends and neighbors, you’re not alone. These community connections often feel more trustworthy than an online ad or agency, but can you—legally and practically—rely on them?

Let’s explore what you need to know, including the legal risks and obligations that come with hiring independently.

Why Families Start with Community Recommendations

Turning to NextDoor or asking people you trust can seem like the safest route when looking for a caregiver. Here’s why families love these channels:

• Local familiarity: Caregivers live in your area, making schedules easier.

• Personal recommendations: Someone you know has worked with them.

• Cost flexibility: You may be able to agree on a more manageable rate without agency overhead.

But making this kind of hire isn’t just about finding the right connection—it’s about doing it the right way.

Understanding the Legal Risks and Responsibilities

When you bring a professional caregiver into your home as a private hire—often called household or domestic employees—you, as the family, become their legal employer. This has serious consequences that families sometimes overlook.

Head to our blog on the differences between agency-based home care and domestic employment to learn more.

Employment Laws & Tax Obligations

• Employment status: Caregivers you hire directly are typically not independent contractors—you become their employer in the eyes of the IRS and state authorities.

• Payroll taxes: Federal and state laws require you to withhold and pay Social Security, Medicare, and unemployment taxes (commonly called “nanny taxes”).

• W-2s and reporting: You’ll need to issue a W-2 at year-end and file household employer tax returns.

• Minimum wage & overtime: You are required to pay at least minimum wage, and in many states, overtime pay is mandated for household workers.

• Workers’ compensation: Some states require you to carry a workers’ compensation policy to protect your caregiver in case of injury while working in your home.

Failing to comply—even out of ignorance—can result in costly penalties, back taxes, and legal headaches.

Legal Screening and Documentation

Unlike agencies or facilitators, you’re responsible for:

• Background checks: There’s no built-in background vetting—unless you do it yourself.

• Verification of work eligibility: Families are required to complete an I-9 form to confirm the caregiver can legally work in the U.S.

• Credential verification: Checking for valid licenses or certifications, especially if medical care is needed, falls solely on you.

Liability if Something Goes Wrong

• Injury claims: If a caregiver gets hurt while working and you don’t have proper insurance, you could be personally liable for medical bills or lost wages.

• Theft or misconduct: Without a formal contract or support network, resolving disputes can be complicated and emotionally taxing.

Privacy and Boundaries

• Lack of a professional support structure can blur lines around privacy, confidentiality, and appropriate workplace boundaries.

How to Safely and Legally Hire a Caregiver Found Through Community Channels

If you find a promising candidate on NextDoor or from a friend, you can still proceed wisely. Here’s how to minimize risks and challenges:

1. Vetting with Diligence

• Ask for multiple references from past employers or families—don’t settle for a friend’s recommendation alone.

• Run professional background checks (including criminal and abuse registries).

• Verify all credentials and work eligibility; don’t be afraid to ask for proof.

2. Clarify the Legal Employer Role

• Register as a household employer with the IRS and your state.

• Set up a payroll system to handle withholdings and tax deposits.

• Purchase or check your insurance coverage, especially for workers’ comp if your state requires it.

• Create a written work agreement—outline duties, pay, schedules, and codes of conduct. Clara can provide a template for you. Read here for more on why these agreements are important.

3. Monitor and Support

• Arrange a paid trial period to observe skills and fit.

• Stay involved: frequent check-ins help maintain quality and provide support for both caregiver and family.

Why Clara Makes It Simpler and Safer

While it’s entirely possible—and sometimes desirable—to hire someone found through your personal network, many families are surprised by the legal and administrative burdens. That’s where Clara, as a facilitator of in-home care, steps in:

• Comprehensive vetting: Clara ensures all background and credential checks are completed.

• Employment compliance: Clara guides families through the legal process, including payroll, taxes, and insurance.

• Backup support and continuity: If your caregiver needs time off, Clara can help you find a replacement to minimize disruptions.

• Clarity and documentation: With Clara, every expectation is laid out in writing, protecting both your family and the caregiver.

By combining community connections with professional safeguards, Clara makes in-home care both personal and secure.

NextDoor and Word of Mouth: Use Them as a Starting Point

• Remember: A glowing recommendation is valuable, but not a substitute for thorough due diligence and legal compliance.

• You are the employer: Embrace that responsibility—learn the requirements and don’t cut corners.

The Bottom Line: Protect Your Loved One and Yourself

Welcoming a caregiver into your home, especially someone found through NextDoor or a close contact, can be rewarding. But always prioritize legal compliance and safety—don’t assume informal means informal when it comes to employment law.

Clara is here to bridge that gap, providing trusted matches with the confidence that comes from a modern, compliant, and supportive caregiving experience. If you have questions or would like help navigating the legal and practical aspects of hiring a caregiver, reach out to Clara today. Together, we’ll create a care solution that reassures, protects, and truly suits your family.