DOL Suspends Enforcement of 2013 Rule Limiting FLSA Exemptions for Home Care Agencies

DOL Suspends Enforcement of 2013 Rule Limiting FLSA Exemptions for Home Care Agencies
On July 25, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued Field Assistance Bulletin (FAB) 2025-4, suspending enforcement of the 2013 Fair Labor Standards Act (FLSA) rule affecting wage and overtime requirements for home care workers. This interim action follows the DOL’s recent proposed rule to fully rescind the 2013 regulation and return to the pre-2013 framework, which allowed home care agencies to claim longstanding exemptions.
Under FAB 2025-4, WHD investigators will no longer enforce the 2013 rule, which:
- Limited “companionship services” to 20% of a caregiver’s duties
- Prohibited third-party employers, such as home care agencies, from using the companionship or live-in worker exemptions
Background: What Changed in 2013?
Congress amended the FLSA in 1974 to extend wage protections to domestic workers while preserving two key exemptions:
- Section 13(a)(15): Companionship services
- Section 13(b)(21): Live-in domestic service employees
The 1975 regulations allowed third-party employers to use these exemptions. But in 2013, the DOL issued a rule:
- Prohibiting third-party employers from claiming either exemption
- Capping “care” duties for companionship workers at 20% of total hours
This forced most home care agencies to begin paying minimum wage and overtime for workers who were previously exempt.
The Proposed Rule: Reversing Course
The DOL’s July 2 proposed rule would:
- Restore third-party employer access to both exemptions
- Remove the 20% cap on care-related tasks
- Reinstate the broader 1975 definition of companionship services, including tasks like meal prep, light housekeeping, and medication reminders)
DOL argues the 2013 rule increased costs, disrupted care continuity, and imposed administrative burdens — without significantly improving wages or retention.
FAB 2025-4: What It Means Now
Until the final rule is issued, WHD investigators are instructed to:
- Discontinue enforcement of the 2013 rule, including open cases
- Allow third-party employers to claim the FLSA exemptions under Sections 13(a)(15) and 13(b)(21)
- Disregard time limits on care duties when determining exemption status
- Maintain protections for skilled workers, such as nurses, who remain non-exempt
What's Next
The public comment period closes September 2, 2025. HCAF will submit comments on behalf of Florida providers and invites members to share feedback by August 15. Specifically, we want to hear:
- How the 2013 rule affected worker scheduling, costs, and continuity of care
- Whether reinstating exemptions would improve workforce stability
- Any anticipated challenges or benefits from rescinding the rule
Please send your input to Kyle Simon, Senior Director of Policy, Advocacy & Communications, at ksimon@homecarefla.org.