At a Glance
- The proposed changes seek to restore the ability of third-party employers (like home care agencies) to classify caregivers as exempt from the FLSA’s minimum and overtime wage requirements under the companionship and live-in domestic service exemptions.
- Comments on the proposed rule are due by September 2, 2025.
On July 2, 2025, the U.S. Department of Labor’s Wage and Hour Division issued a proposed rule that would reinstate the Fair Labor Standards Act’s (FLSA) minimum wage and overtime exemption for home care workers employed by third-party home care agencies. The proposed regulation’s comment period closes on September 2, 2025.
History of the “Companionship” and “Live In” Exemptions to the FLSA – From Exempt in 1975 to Non-Exempt in 2013/2016 to Exempt Again in 2026?
In 1974, when extending FLSA coverage to “domestic service” workers, Congress exempted employees who provide “companionship services” from the minimum wage and overtime requirements and also exempted live-in domestic service employees from overtime.1 Congress granted the labor secretary authority to define the terms in the exemption through regulation.
The DOL exercised that authority in 1975 by issuing the regulations at 29 C.F.R. Part 552 to define the scope of this “companionship exemption.” Section 552.109 of the 1975 regulations established that the exemption applies to employees “who are engaged in providing companionship services” and “who are employed by an employer or agency other than...
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