DOL Publishes Home Care Industry Guidance

July 30, 2025

On July 25, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued Field Assistance Bulletin (FAB) 2025-4, providing enforcement guidance to WHD field staff regarding the home care industry under the Fair Labor Standards Act (FLSA). The FAB’s enforcement guidance is effective as of July 25, 2025 .It will remain in effect until the effective date of any final rule issued by the DOL regarding the 2013 final rule, which addressed minimum wage and overtime protections for domestic service employees.

Background

In 1974, the FLSA was amended to extend coverage to all domestic service employees. At the same time, exemption categories of domestic service employees were added to the FLSA, including

An exemption from the FLSA’s minimum wage and overtime pay requirements for employees who provide “companionship services for individuals who ... are unable to care for themselves.” 29 U.S.C. 213(a)(15); and

An exemption from the FLSA’s overtime pay requirement (but not the minimum wage requirement) for “any employee who is employed in domestic service in a household and who resides in such household.” 29 U.S.C. 213(b)(21).

In 2013, the DOL issued a final rule that narrowed the scope of the FLSA’s exemptions for companions and live-in domestic service workers. On July 2, 2025, the DOL published a Notice of Proposed Rulemaking (NPRM) that would rescind the 2013 final rule.

Key Highlights

While the FAB is in effect, the WHD will not apply the 2013 final rule when determining whether a home care worker is subject to the FLSA’s wage requirements. Additionally, the FAB directs WHD staff to:

• Discontinue enforcement of the 2013 final rule, including open cases that predate the FAB;
• Not to investigate or take enforcement action against third-party employers claiming Section 13(a)(15) or Section 13(b)(21) exemptions; and
• Not to consider any limitations on the time home care workers spend providing care when determining whether a home care worker is providing companionship care.

Employer Takeaway

While the FAB will not affect any investigations or other actions regarding violations of other FLSA provisions not implicated by the 2013 final rule, employers should evaluate how it may impact any current home care industry enforcement actions. Employers should monitor this situation for updates.

Provided by Custom Benefit Consultants, Inc. This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. © 2025 Zywave, Inc. All rights reserved.