In July 2025, the United States Department of Labor (DOL) announced a proposed rule that could change how home health care workers get paid. The proposal aims to reverse the 2013 rule that extended federal minimum wage and overtime protections to most home care employees. If you are one of the thousands of California caregivers, it is understandable if you worry about how this could affect your wages and rights.
What does the 2025 proposal mean?
The DOL’s proposal temporarily pauses enforcement of the 2013 rule while it reviews public comments and drafts a new final rule. Remember that before 2013, many home care workers were excluded from minimum wage and overtime protections under the Fair Labor Standards Act (FLSA). Caregivers were classified as companionship workers back then, similar to babysitters.
The 2013 DOL rule fixed this issue by requiring most home care workers to receive at least the federal minimum wage and overtime pay for hours worked over 40 per week. It also stopped third-party employers from using the companionship exemption to avoid paying overtime.
If the 2025 proposal becomes official, the rollback would again allow third-party employers to classify certain caregivers as exempt from federal minimum wage and overtime pay.
But there is no need to panic yet. California has strong wage and hour laws that continue to protect most caregivers in the state.
How does the state plan to protect workers?
Despite the proposal, California’s wage protections will still apply. Even if the federal rollback takes effect, state law still guarantees:
- State minimum wage for all hours worked
- Overtime pay after eight hours a day or 40 hours a week
- Meal and rest breaks for qualifying employees
The biggest issue now is the employers’ confusion and how it could lead to underpayment or misclassification, which is why workers need to stay alert.
Stay informed and proactive
The proposed rule is not in effect as of this writing. But even if the rollback takes effect, California’s labor laws still offer strong protection. However, you need to know your rights so you can easily recognize if your employer is taking advantage of this proposal. If you are unsure how the proposed rule could impact your job, speak with an employment attorney to review your pay and ensure you receive every dollar you earned and report any violations.