Wage and Hour Rules for Home Care and Domestic Care Workers

Home care workers provide critical support to older adults and people with disabilities, often allowing them to remain safely in their homes instead of entering institutional care. At the same time, these workers are employees with legal rights to fair pay and basic workplace protections. Understanding how wage and hour laws apply to home-based care is essential for both workers and the families or agencies that employ them.

Who Counts as a Home Care or Domestic Care Worker?

In wage and hour law, the category “home care” or “domestic” worker is defined by the kind of work performed, not by job title alone. A person may be considered a covered domestic service or direct care worker if they are hired to provide services in or around a private home, such as:

• Personal care: help with bathing, dressing, grooming, toileting, eating, or mobility.
• Health-related tasks: medication reminders, assistance with medical equipment as allowed by law.
• Household support: cleaning, laundry, meal preparation, shopping, or other routine household tasks.
• Companionship: social interaction, accompanying to appointments or on walks, playing games or reading together.

Workers may be engaged directly by an individual or family, or through a home care agency or third-party provider. Regardless of how they are recruited, most of these workers are now covered by federal wage and hour protections as long as they meet basic employee criteria.

Basic Federal Protections Under the FLSA

The primary federal law that governs wages and hours is the Fair Labor Standards Act (FLSA). The U.S. Department of Labor (DOL) revised FLSA regulations so that most home care workers are explicitly entitled to both minimum wage and overtime pay.

These protections apply in addition to any more generous state or local rules. If state law requires a higher minimum wage or stronger overtime benefits than federal law, the worker is entitled to the more protective standard.

The Home Care Final Rule: Ending Broad Companionship Exemptions

Historically, many home care workers were excluded from core FLSA protections under an exemption for “companionship services.” In 2013, the Department of Labor adopted the Home Care Final Rule, which significantly narrowed those exemptions and extended federal minimum wage and overtime rights to most home care workers.

Under the current rules:

• Home care workers employed by third-party agencies must receive minimum wage and overtime, even if they primarily provide companionship.
• Family or household employers may still claim a limited companionship exemption, but only if the worker truly provides mainly companionship and meets strict criteria.

Advocates emphasize that these changes recognized home care as skilled, essential work and helped move the sector away from a historical legacy of exclusion.

Minimum Wage Requirements

For covered home care and domestic workers, the employer must pay at least the highest applicable minimum wage out of federal, state, and local law. At the federal level:

• The federal minimum wage is $7.25 per hour under the FLSA.
• All hours that count as “hours worked” must be paid at or above this rate.

If a worker is paid a flat daily or weekly amount, the total compensation must still average at least the minimum wage for each hour actually worked in that week. For example, if a caregiver receives a lump sum for a long shift, the employer must divide that pay by the total hours of work to verify compliance; if the resulting hourly rate falls below the legal minimum, additional pay is owed.

Many states and cities set higher minimum wage levels, and in some sectors—such as certain health care jobs—minimum pay floors are rising beyond the general minimum. Workers and employers should always check current local rules and industry-specific statutes.

Overtime Pay for Home Care Workers

For most covered home care employees, overtime rules work similarly to other nonexempt workers:

• Overtime is owed when an employee works more than 40 hours in a workweek.
• The overtime rate must be at least 1.5 times the regular hourly rate for every hour over 40.
• The workweek is a fixed, recurring period of seven consecutive 24-hour days, defined by the employer.

The regular rate of pay includes hourly wages plus many kinds of nondiscretionary bonuses and commissions. If the worker receives a flat weekly amount, the employer must calculate the regular rate by dividing total straight-time earnings by the number of hours worked, then apply the 1.5 multiplier to overtime hours.

Special Rule for Live-In Domestic Service Employees

Federal regulations recognize a limited exemption from overtime for certain live-in domestic service employees, which may include some live-in home care workers when employed solely by a private household.

• Live-in domestic employees must be paid at least the federal minimum wage for all hours worked.
• However, if they qualify under the federal live-in exemption, they may not be entitled to overtime solely under federal law.
• States can and often do provide stronger overtime protection for live-in workers, so state law must also be checked carefully.

To use this exemption, the employer must meet detailed requirements and keep reasonable records of hours worked. The worker and employer can agree in writing to exclude certain off-duty periods, such as bona fide sleep time and meal breaks, from paid hours—so long as those periods are genuinely free from work interruptions.

Hours Worked: What Time Must Be Paid?

Under the FLSA, employers must pay for all hours worked, which includes any time that the worker is performing services or is required to be on duty and available to work. For home care workers, this often includes:

• Assisting with personal care tasks, household chores, or health-related services.
• Time spent waiting on the premises if the worker must remain ready to provide care.
• Travel time between multiple clients during the workday when required by the employer.

Short rest breaks are generally counted as paid time, while longer, clearly defined meal periods where the worker is fully relieved of duty may be unpaid. If a meal or sleep period is interrupted so that the worker must provide services, that time counts as work and must be paid.

Nights, Sleep Time, and Long Shifts

For workers on extended shifts or who remain overnight in the client’s home, employers and employees can create written agreements to address sleep time and off-duty periods.

• Reasonable, uninterrupted sleep and genuine off-duty time may be excluded from payable hours if properly agreed.
• If the worker is frequently awakened or performs substantial work during the night, most or all of the overnight period may become compensable.

Because these arrangements are complex and highly fact-specific, it is important to keep accurate schedules, review the arrangement periodically, and update the agreement if the actual pattern of work changes meaningfully.

Companionship Services and Narrow Exemptions

The modern rules still recognize a narrow category of companionship services, but the definition is strict and the exemption is much smaller than in the past.

• Companionship services focus on fellowship and protection—for example, talking, playing cards, taking walks, or accompanying the person to appointments.
• Only a limited amount of personal care or housekeeping may be performed if an exemption is to apply.
• If a worker spends substantial time on hands-on care, health-related tasks, or general household work, they will typically not qualify as primarily providing companionship services.

The exemption for companionship is not available to third-party employers such as home care agencies; those employers must pay both minimum wage and overtime to their workers. Only an individual, family, or household that directly employs a companion may attempt to rely on this limited exemption, and they should evaluate carefully whether the worker’s actual duties meet the narrow definition.

Who Is the Employer: Household, Agency, or Both?

In home care, it is common for more than one entity to be considered an employer under wage and hour law. The DOL applies a joint employment analysis to determine who is legally responsible for pay.

• A private home care agency that hires and assigns workers is generally an employer and must comply with FLSA obligations.
• A consumer or family that directs the worker’s tasks, sets the schedule, or has the power to hire and fire may also be treated as an employer.
• When joint employment exists, each employer can be held liable for unpaid minimum wage or overtime.

The determination depends on factors such as who controls the work, who pays wages, whose name appears on employment agreements, and how integrated the worker is into the business or household operations. Written care plans and service agreements are often key documents in this analysis.

Recordkeeping Duties

Employers of home care workers must maintain accurate records of time worked and wages paid. While the exact format can vary, the records should typically include:

• Worker’s full name and identifying information.
• Regular hourly rate of pay and overtime rate.
• Daily and weekly hours worked.
• Total straight-time and overtime earnings for each workweek.
• Deductions and additions to wages and the total pay each pay period.

Home care agencies usually handle recordkeeping systems for their employees. However, when individuals or families directly employ workers, they must also follow these rules even if they have only one employee. Accurate records help resolve disputes and demonstrate compliance if there is an audit or complaint.

State and Local Laws: Often More Protective

While the FLSA sets a floor, state and local laws often provide stronger protections for domestic and home care workers. Examples of additional or higher protections can include:

• Higher minimum wages, including special minimums for health care or care sector workers.
• Daily overtime rules (for example, overtime after a certain number of hours in a single day) or double-time in some jurisdictions.
• Specific bills of rights for domestic workers that guarantee rest breaks, written agreements, or notice of schedule changes.

Because these provisions vary widely by location, workers and employers should check their state labor department and any city ordinances. Under the general principle that the most protective rule applies, if state law provides more favorable terms than federal law, the worker is entitled to the higher standard.

Practical Tips for Workers and Household Employers

For Home Care and Domestic Workers

• Track your hours: Keep your own written or electronic log of when you start and end work, including any overnight interruptions.
• Keep copies of pay stubs, contracts, care plans, and schedules.
• Clarify duties so you know whether your role is mainly companionship, personal care, household work, or a mix.
• Ask about overtime when you regularly work more than 40 hours in a week or have long, multi-day shifts.
• Seek advice from legal aid, worker centers, or government agencies if you believe you are not being paid correctly.

For Families and Individuals Who Employ Care Workers

• Determine your role: Decide if you are the legal employer, if an agency is, or if both of you are joint employers under FLSA and state law.
• Define a workweek and overtime policy in writing, consistent with legal rules.
• Use written agreements for live-in arrangements, specifying on-duty hours, sleep time, and meal breaks, and update them if circumstances change.
• Follow payroll rules, including tax withholding and documentation, rather than paying entirely in cash without records.
• Monitor local law for changes in minimum wage, domestic worker bills of rights, and sector-specific wage rules.

Frequently Asked Questions (FAQs)

Do home care workers have to be paid at least the minimum wage?

In most cases, yes. Under federal law, nearly all home care workers are entitled to at least the federal minimum wage for every hour worked, with many states requiring higher minimums.

When is overtime required for a home care worker?

For covered workers, overtime is generally required when they work more than 40 hours in a defined seven-day workweek. Overtime pay must be at least one and a half times the regular hourly rate, though some live-in domestic employees may be exempt from federal overtime while still protected by state rules.

Are workers hired through an agency treated differently than those hired directly by families?

Agency-employed home care workers are always entitled to federal minimum wage and overtime. For workers hired directly by households, coverage and exemptions can depend on the duties performed, whether they live in the home, and how state law applies.

Does time spent sleeping in a client’s home have to be paid?

It depends. If there is a genuine, agreed-upon sleep period with minimal interruptions, and other legal conditions are met, some of that time may be excluded from paid hours. However, if the worker frequently has to get up to provide care, the interrupted time must be counted as hours worked and paid.

Where can I learn more or file a complaint about unpaid wages?

Workers can contact the U.S. Department of Labor’s Wage and Hour Division or their state labor agency for information, assistance, or to file a complaint. Worker organizations and legal services groups that focus on domestic and home care workers are also important resources.

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medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

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