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Dwayne B.
Dwayne B., Lawyer
Category: Employment Law
Satisfied Customers: 33935
Experience:  Employment Law Expert
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I run a small language school and would like to open a

Customer Question

I run a small language school and would like to open a division to provide nannies who would be trained to teach kids their native language while doing the job of a nanny .
The nanny would pay a fee under $400 for an initial 2 day training and will be sent to work in a family .She would receive books and other material to teach her native language .She would also have mentoring and continuous training leading to a certification in the method.
I plan to have the family pay me for the services of the nanny and I would deduct a small percentage and pay the nanny .
If aI operate this way ,would I be liable in case of an accident ?How can I diminish the liability ?
Any advise would be appreciated .
Submitted: 2 years ago.
Category: Employment Law
Expert:  Dwayne B. replied 2 years ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts.

If I operate this way, would I be liable in case of an accident ?

This can't ever be answered for sure because it depends on the unique facts of the case but it is almost certain that if a lawsuit takes place you would be sued and certainly possible that you could end up being held liable.

How can I diminish the liability ?

The most effective way to diminish or limit the liability, the potential can never be completely avoided, is by the use of contracts and forming a corporation. Your corporation would then use the nannies as independent contractors.

What you would likely want to do is have an attorney prepare your paperwork to be an LLC (Limited Liability corporation) and potentially more than one corporation. This usually provides some tax breaks and also by its nature, limits your personal liability so that even if you are sued they can't get to your personal assets. You then have the parents sign a contract with the LLC, the contract providing a certain amount of waivers and releases in it, then you have the nannies sign an employment contract where they act as independent contractors. In their contract you would have language that essentially agrees they are responsible for any issues but you also have language in there that meets the elements of an independent contractor plus a non-compete agreement so they can't be hired outside of your company for the same services.

These arrangements should provide the maximum protection and then you can also get an insurance policy that protects you even more.

However, by all means hire an attorney to draft your documents including your LLC and also have them advise you on how to "act like a corporation". Many people use forms or try to draft the documents themselves and end up providing no protection and, in some cases, even make it worse on themselves. It sounds like you have a viable business idea and if it is worth doing then it is worth doing correctly.

Customer: replied 2 years ago.
Can a nanny be legally an independent contractor in New York State ?
Expert:  Dwayne B. replied 2 years ago.

In your case it would be fine since they would be hiring your company to provide a nanny which is different than a person hiring a nanny for themselves. If a person hires a nanny directly they have a problem with them actually being independent contractors because they act as employees of the family. It's different when a corporation is providing them. That's why it is important for a lawyer to draft their work agreements and make sure that they meet the qualifications to be an independent contractor.

Expert:  Dwayne B. replied 2 years ago.

I am going to be offline for the rest of the evening but if you have any additional questions please ask them in this thread and I'll get back to them tomorrow morning.