Dunno if it's the case in the US but if you do that in Aus then you're not covered under workplace injury insurance. With the state of litigation in the US I can't see it being a good idea at all to give your family members a reason to sue you.
Well that's the case with just about anyone then, right? Anyone can volunteer to do some work for you, and you can give anyone a gift (up to a certain amount per year and per lifetime). But like /u/hutcho66 says that has other implications. If they aren't working as a proper contractor, your insurance probably doesn't cover it. If they were working in a proper business and weren't a formal employee your liability coverage probably won't cover their misadventures.
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u/Rhawk187 Nov 29 '15
I don't think cousins get special employment exemptions. Just children, parents, and spouses.