The U.S. Department of Labor (DOL) proposed a new rule that would reinstate long-standing exemptions under the Fair Labor Standards Act (FLSA) for certain domestic workers, reversing changes made in 2013. The proposed rule, published on July 2, 2025, would return to the 1975 regulatory definitions of “companionship services” and the treatment of live-in domestic service employees.
Under the 1975 rules, workers providing companionship services and live-in domestic employees were exempt from FLSA’s minimum wage and overtime requirements. However, a 2013 revision narrowed the definition of companionship services and prohibited third-party employers, such as home care agencies, from claiming these exemptions. The DOL now argues that the 2013 changes may have inadvertently reduced access to affordable home care and do not reflect the best interpretation of the FLSA.
If finalized, the proposed rule would again allow third-party employers to apply the exemptions and broaden the scope of duties considered “companionship services.” The DOL contends this change could help meet the growing demand for in-home care by reducing costs for families and encouraging more providers to enter the field.
The DOL 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.
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