Notice of Proposed Rulemaking Addressing the FLSA’s Exemption of Employees Who Provide Companionship Services and Live-In Domestic Service Employees
On July 2, 2025, the Department of Labor (Department) published a Notice of Proposed Rulemaking (NPRM) entitled, “Application of the Fair Labor Standards Act to Domestic Service,” 90 Fed. Reg. 28976. Members of the public may submit comments on the NPRM at www.regulations.gov/docket/WHD-2025-0001 by the end of the comment period at 11:59 pm ET on September 2, 2025.
In 1974, Congress amended the Fair Labor Standards Act (FLSA) to extend coverage to all “domestic service” employees, including those employed by private households or small companies previously not covered by the Act. At the same time, Congress created FLSA exemptions for two categories of domestic service employees. First, in section 13(a)(15), Congress added an exemption from the Act’s minimum wage and overtime compensation requirements for employees who provide “companionship services for individuals who … are unable to care for themselves.” Second, in section 13(b)(21), Congress added an exemption from the overtime 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.” Finally, Congress authorized the Department to issue regulations to implement the 1974 FLSA Amendments, including these two new exemptions.
In 1975, the Department promulgated regulations applying the FLSA to domestic service employment at 29 CFR part 552, including provisions addressing the companionship services and live-in domestic service employee exemptions. These regulations remained substantially unchanged for almost 40 years. However, in 2013, the Department issued a final rule which significantly narrowed the scope of the FLSA’s exemptions for companions and live-in domestic service workers. Specifically, the 2013 rule precluded third party employers (like home care agencies) from claiming either exemption and narrowed the definition of “companionship services” that exempt companion workers could perform.
Because the Department is concerned that the 2013 regulations do not reflect the best interpretation of the FLSA and discourage essential companionship services by making these services more expensive, the Department is proposing to return to the 1975 regulations. The Department welcomes commenter feedback on its NPRM.
The Department has received requests, available as part of the rulemaking docket on www.regulations.gov, for an extension of the comment period of the NPRM. After considering the requests, the Department continues to believe that the original 63-day comment period is a reasonable and adequate amount of time to provide notice and an opportunity for the public to comment on the proposed rule. Accordingly, the comment period for the proposed rule ends on September 2, 2025. You may review the Department’s full response at this link: https://www.regulations.gov/document/WHD-2025-0001-1007.