The U.S. Department of Labor has published a proposed rule that would significantly reduce wage protections for millions of home care workers, reversing Obama-era regulations that extended minimum wage and overtime requirements.
The proposal in the Federal Register would reinstate broader exemptions under the Fair Labor Standards Act (FLSA) for workers providing “companionship services” and live-in domestic employees.
The current controversy stems from a 2013 Department of Labor rule that narrowed longstanding FLSA exemptions for domestic workers. Prior to 2013, workers providing companionship services and live-in domestic employees were largely exempt from federal minimum wage and overtime requirements under regulations that had remained unchanged for nearly 40 years.
The 1975 regulations defined companionship services broadly to include “fellowship, care and protection,” encompassing household tasks such as cooking, laundry, and light housework.
The Obama administration’s 2013 final rule significantly restricted these exemptions in two key ways: it narrowed the definition of “companionship services” to focus more on direct fellowship rather than caregiving tasks, and it prohibited third-party employers such as home care agencies from claiming exemptions for their workers. These changes were designed to extend minimum wage and overtime protections to approximately 2 million home care workers.
The Trump administration’s proposed rule would return to the pre-2013 regulatory framework, once again allowing third-party employers to apply the companionship and live-in exemptions. Under the proposal, workers providing companionship services would be exempt from both minimum wage and overtime requirements, while live-in domestic service employees would be exempt from overtime pay but still entitled to minimum wage.
The Department argues that the 2013 changes might not reflect the best interpretation of the FLSA and might discourage essential companionship services by making these services more expensive. DOL contends that reverting to the broader 1975 definition would significantly reduce regulatory burden for consumers and providers while potentially expanding access to home care services.
The proposed rule could affect approximately 3.7 million home health and personal care aides nationwide. While the median hourly wage for these workers was $16.12 in 2023, well above the federal minimum wage of $7.25, the elimination of overtime protections could result in workers “working additional overtime hours at straight-time pay and/or receiving less pay for the overtime work they would perform,” according to the Department’s own analysis.
The Department is accepting public comments on the proposed rule through September 2, 2025. Stakeholders can submit feedback via the Federal eRulemaking Portal at Regulations.gov, referencing Regulatory Information Number (RIN) 1235-AA51.
