New Jersey requires workers' compensation for all household employees — no exceptions. Here's what NJ host families need to know.
New Jersey Requirements
Required:
- ✅ Workers' Compensation Insurance — Mandatory
- ✅ Auto insurance addition (if au pair drives)
Recommended:
- 💡 Supplemental medical insurance
- 💡 Umbrella liability coverage
Workers' Compensation
New Jersey law is clear: if you have a household employee, you need workers' comp. This includes au pairs, nannies, housekeepers, and any other domestic workers.
No Exemptions
Unlike some states, New Jersey has no threshold exemptions for:
- Hours worked per week
- Wages paid
- Type of domestic work
If your au pair works in your home, you need coverage. Period.
Penalties
Operating without workers' comp in New Jersey can result in:
- Fines up to $10,000 for first offense
- Criminal charges for repeat violations
- Personal liability for all injury costs
How to Get Coverage
Option 1: Private Insurance Market
New Jersey has a competitive private insurance market for household workers' comp. Companies that serve NJ include:
- GTM Payroll
- HomeWork Solutions
- NEXT Insurance
Option 2: NJ Compensation Rating Bureau
If you're having trouble finding coverage in the private market, contact the NJ Compensation Rating & Inspection Bureau for assistance.
Cost Estimate
Expect to pay $700 - $1,400/year for household workers' comp in New Jersey.
Auto Insurance
New Jersey has mandatory auto insurance. If your au pair will drive:
- Contact your insurer before they drive
- Add them as a named driver on your policy
- Provide license documentation from their home country
- Consider an IDP (International Driving Permit)
Cost Impact
Adding an au pair in New Jersey typically costs $300 - $900/year extra, depending on:
- Coverage levels
- Au pair's age
- Your location (North Jersey near NYC is pricier)
Medical Insurance
Your au pair agency provides basic medical coverage. This handles:
- Routine medical care
- Emergency treatment
- Prescriptions
It does NOT cover work injuries — that's what workers' comp is for.
Supplemental Options
Consider supplemental medical if you want:
- Higher coverage limits
- Dental and vision
- Better prescription coverage
- Lower out-of-pocket costs
NJ-Specific Considerations
Proximity to NYC
Many NJ families near New York City have au pairs who occasionally travel into Manhattan. Your workers' comp should cover them regardless of where they're working — but double-check your policy covers out-of-state work.
Multiple Work Locations
If your au pair works at multiple locations (your home, a vacation property, etc.), make sure all locations are covered.
Compliance Checklist
- [ ] Purchase workers' compensation insurance
- [ ] Set up payroll withholding (or use a service)
- [ ] Add au pair to auto insurance (if driving)
- [ ] Review agency medical coverage
- [ ] Consider supplemental coverage
Get Started
Take our 2-minute quiz to see exactly what coverage you need and compare quotes from NJ-approved providers.