Domestic Workers Face Difficulties in Accessing Social Security and Retirement Benefits

Washington, DC – The National Council of La Raza (NCLR), the largest national Hispanic civil rights and advocacy organization in the U.S., released a report today documenting the obstacles that keep private household workers from a secure retirement. The report, Domestic Workers Working Hard to Sustain American Families, Compromising Their Social Security, provides recommendations for improving the retirement prospects of people who work as nannies, gardeners, cooks, and cleaning persons in private homes. Latinos, who make up one-third of the private household workforce, have lower Social Security coverage than any other worker group.

“This Labor Day, Americans are increasingly aware that, for many of us, our ability to be in the workforce depends on others – people who keep our children and elders safe, our houses clean, and our yards green. Private household employees deserve a secure retirement after a lifetime of hard work, but outdated Social Security regulations and the lack of job-related retirement benefits puts them at risk of poverty. Surely we can do better for the workers that millions of American families depend upon,” said Janet Murguía, NCLR President and CEO.

NCLR’s report details the lack of employer-related retirement benefits, low employer compliance with wage reporting and tax-paying requirements, and discrepancies within the Social Security system that make it difficult for domestic workers to save for retirement and access their fair share of Social Security benefits.

Recommendations include approval of legislation proposed by Congressman Xavier Becerra (D-CA) to eliminate disparities in how domestic workers earn Social Security credits; stronger enforcement by the Internal Revenue Service to ensure that private households file accurate wage reports that will give domestic workers the Social Security credits they have earned; and initiatives to better inform workers about Social Security and make it easier for them to save tax refunds for retirement.

“NCLR’s report shows that we need a more accessible and streamlined process for employers of domestic workers to comply with Social Security requirements. The government must make it easy for employers to do the right thing,” said Murguía. “This Labor Day, the families who depend on domestic workers should commit to doing more to ensure that the years of hard work and service in their homes are justly rewarded.”

For a copy of NCLR’s new report, Domestic Workers Working Hard to Sustain American Families, Compromising Their Social Security, or for more information, please call Luisa Grillo-Chope at (202) 785-1670 or visit www.nclr.org.

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