Big news for employers in the home care space! The U.S. Department of Labor (DOL) just issued fresh guidance that could affect how you handle wages for home care employees—and yes, it's worth your attention.
On July 25, 2025, the DOL’s Wage and Hour Division (WHD) released Field Assistance Bulletin (FAB) 2025-4, clarifying how it will enforce wage and hour rules under the Fair Labor Standards Act (FLSA) for home care workers.
Let’s break it down.
A Quick History Lesson
Way back in 1974, the FLSA was expanded to cover domestic service employees, but also included a few carve-outs:
- Companionship exemption: For workers providing companionship to those unable to care for themselves—exempt from minimum wage and overtime.
- Live-in domestic exemption: For workers who live in the household—exempt from overtime, but still owed minimum wage.
In 2013, a DOL rule significantly narrowed those exemptions—bringing more workers under wage protection. But fast forward to 2025, and things are shifting again.
What Just Changed?
With FAB 2025-4, the DOL has effectively hit "pause" on enforcing the 2013 rule. Until a new final rule is issued, here’s what’s happening:
- WHD will no longer enforce the 2013 rule—yes, that includes open cases.
- Employers claiming exemptions (companionship or live-in) will not be investigated.
- The amount of time spent providing care won’t affect companionship status anymore.
In short: the DOL is temporarily reverting to the broader exemptions that existed before 2013.
What Does This Mean for Employers?
If you’re in the home care industry, this change could reduce your risk of wage-and-hour violations—but don’t toss compliance aside just yet.
Here’s what we recommend:
- Review your current pay practices for home care workers.
- If you previously faced enforcement based on the 2013 rule, revisit those cases.
- Keep an eye on future updates—a final rule may shift the landscape again.
Need help navigating the FLSA and wage rules for your caregiving team? CBC is here to help you make sense of it all and keep you ahead of regulatory shifts.
