Possibly, but only under very limited circumstances. A live-in caregiver might qualify as a 1099 independent contractor if ALL the following are true:

1. They work part-time for the family.
2. They set their own schedule and rates.
3. They regularly work for multiple clients simultaneously.
4. They are free to come and go as they please.
5. They can send someone else to work in their place without notifying the client.
6. They carry their own liability insurance.
7. They invoice the client for services rendered.

In nearly all other situations, a live-in caregiver is considered a household employee under IRS guidelines and U.S. Department of Labor (DOL) rules, and must be paid as a W-2 employee, regardless of how the family or caregiver prefers to structure payment.

A signed contract does not determine your employment classification.  The IRS and DOL will disregard the contract if the working relationship does not meet the legal standards for independent contractor status.   What matters is the actual nature of the working relationship—specifically, who has control over how, when, and where the work is done.

Working as a W-2 employee offers several key advantages over being paid as a 1099 independent contractor. As a W-2 employee, your employer shares the cost of Social Security and Medicare taxes, which helps you qualify for future benefits like retirement income, disability insurance, and Medicare. You’re also more likely to be covered by workers’ compensation insurance in case of injury and may be eligible for unemployment benefits if the job ends.

W-2 employees typically have a simpler tax process. Your employer withholds taxes for you, and you receive a W-2 form at year-end, avoiding the need to calculate and pay estimated taxes quarterly like a 1099 worker must. In addition, W-2 employment can provide a more verifiable income record, which helps when applying for loans, housing, or public benefits.

W-2 caregivers are also protected by labor laws, including minimum wage, overtime (depending on the job and location), and other employment rights. While 1099 status may offer more flexibility in some cases, it also comes with higher financial risk and fewer legal protections.

In summary, being paid as a W-2 employee provides better long-term financial security, easier tax handling, and greater legal protections compared to working as a 1099 contractor.

Rates vary by location, experience, and job complexity. In the U.S, full-time live-ins can find entry level jobs with home care agencies or group homes that pay $30,000-$60,000 per year.

Once a caregiver has successfully completed a few long-term entry level live-in jobs and has strong recommendations from those employers, they can enter the professional traveling live-in market. Professional live-ins can typically earn between $6,000 and $10,000+ per month,  $72,000-$120,000 per year. 

The employer determines payment frequency. Most families pay weekly or bi-weekly. This should be specified in your employment agreement.

If  hired by a home care agency then live-in caregivers are required to be paid overtime, usually after 40 hours of scheduled work time.

If hired directly by a family then the family may qualify for a federal exemption from the over-time pay requirement.

A household employer can be exempt from paying overtime under the FLSA if:

• They hire the caregiver directly (not through an agency).

• The caregiver lives in the home five or more days a week.

• The caregiver performs domestic work. (housework or caregiving)

• Accurate records are maintained, including timesheets of actual hours worked.

• The caregiver is paid at least minimum wage for all hours worked.

 A number of states have overrode the FLSAs over-time exemption for private-hire live-ins. Those states are CA, ME, MD, MA, MN, NJ, NY, and OR.  

Most live-in caregivers are expected to be available throughout the day with “on-call” breaks in between. A typical live-in schedule is 7am-11pm, and then 8 hours off to sleep. How many hours of the scheduled hours that you will be required to work, versus be on-call, will depend on the specific requirements of the family or agency. Your specific schedule should be detailed in your employee agreement.

It's up to the household employer and the live-in caregiver to agree upon a work schedule. A few states like NY and CA suggest that employers give their live-in at least one day off a week, but even those states don’t make it a requirement, as long as the live-in agrees and is paid for any time worked.  

It is common for live-ins to get time to rest during their scheduled hours, but they are “on-call” during those informal breaks, in case the care recipient needs immediate help. Some families will give the live-in a shift off every week (unpaid) to leave the home and be completely off and free of all duties, including being on-call. The shift off could be a few hours or as long as a full weekend, depending on the job terms.