What is the FLSA companionship exemption and how does it affect home care agencies?

The FLSA companionship exemption, established by Congress in 1974, exempts workers who provide fellowship, protection, and personal care to elderly or disabled individuals from federal minimum wage and overtime requirements. Under the DOL's 2025 proposed rule, third-party home care agencies could again claim this exemption—but the 2013 rule that eliminated it remains current law, and states like New York, New Jersey, and California have independent overtime requirements that apply regardless of the federal outcome.

Does Field Assistance Bulletin 2025-4 mean home care agencies no longer have to pay companion workers overtime?

No. FAB 2025-4 instructs federal Wage and Hour Division investigators to stop enforcing the 2013 FLSA rule while the proposed rollback is pending—but it does not change the law. The 2013 rule remains legally in effect. Workers retain private rights of action and can still sue for unpaid overtime. State wage laws are entirely unaffected. Agencies that adjusted payroll based solely on the federal enforcement suspension remain exposed to state-level wage complaints and private litigation.

Which home care workers would be covered under the DOL's proposed companionship exemption rollback?

The proposed rule would cover companion and personal care workers employed by third-party agencies providing fellowship, protection, and care to elderly or disabled clients—approximately 3.7 million workers nationally. The 20% care-duty cap from the 2013 rule would be eliminated. Skilled nursing care workers such as licensed practical or registered nurses are not covered by the companionship exemption under any version of the rule.

What should home care agencies in New York, New Jersey, and California do regarding companion worker overtime?

Agencies in New York, New Jersey, and California must continue paying overtime to companion and live-in workers employed by third-party agencies regardless of what happens at the federal level. These states have independently declined to recognize the FLSA's companionship and live-in exemptions under their own wage and hour statutes. A finalized federal rollback would have no effect on those state requirements. Agencies in these markets should conduct a state-specific payroll analysis with qualified employment counsel before making any classification changes.

What immediate steps should home care agencies take in response to the proposed FLSA companionship exemption rollback?

The most risk-appropriate approach is: (1) Do not change payroll practices based on FAB 2025-4 alone without first completing a state law analysis. (2) Review and document the current classification basis for all companion and live-in workers. (3) Verify your state's specific overtime requirements through your state DOL or legal counsel. (4) Confirm your home care software can apply overtime calculation changes at the state level independently. Consult qualified employment counsel before any payroll configuration changes.

How does the Supreme Court's Loper Bright decision affect the DOL's proposed companion exemption rule?

The DOL's July 2025 proposed rule explicitly relies on Loper Bright Enterprises v. Raimondo, which overturned the Chevron deference doctrine in 2024. Previously, the 2013 FLSA rule survived court challenges under Chevron. Now courts must independently determine the best reading of the 1974 FLSA statute. The DOL tentatively concludes that its pre-2013 position—allowing third-party employers to claim the exemption—is the better reading. The comment period closed September 2, 2025; a final rule has not been issued.

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Frequently Asked Questions

What is myEZcare?

myEZcare is an all-in-one, paperless home care and EVV software platform that helps home health, hospice, private duty, assisted living, and adult day care agencies manage scheduling, billing, compliance, and care delivery from a single system.

What is Electronic Visit Verification (EVV) and does myEZcare support it?

EVV is a system that electronically confirms the time, location, and type of caregiver visits. myEZcare includes built-in, GPS-verified EVV that helps agencies stay compliant with the 21st Century Cures Act and state Medicaid requirements.

Is myEZcare HIPAA compliant?

Yes. myEZcare is built to be HIPAA-compliant, protecting patient health information with secure, role-based access and encrypted data handling.

Is myEZcare Medicaid ready?

Yes. myEZcare is Medicaid-ready and supports compliant billing and claims, helping agencies submit accurately and reduce reimbursement delays.

What types of agencies can use myEZcare?

myEZcare supports home health, hospice, private duty, assisted living, homecare, and adult day care providers of all sizes.

Does myEZcare offer scheduling and billing features?

Yes. The platform provides caregiver scheduling, time tracking, automated billing, and claims management to streamline day-to-day operations.

Can caregivers use myEZcare on a mobile device?

Yes. myEZcare offers mobile apps so caregivers can clock in and out, verify visits via GPS, and access care details from the field.

How can I get started with myEZcare?

You can schedule a free demo through the myEZcare website to see the platform in action and discuss a plan that fits your agency.

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