More than a decade after federal officials started requiring minimum wage and overtime pay for most in-home care workers assisting people with disabilities, the Trump administration wants to do away with the protections.
The U.S. Department of Labor is seeking to rescind a 2013 regulation and revert to a standard dating back to the 1970s. Under the plan, those who provide in-home assistance would be treated as “companions” — much like babysitters — without many of the rights enjoyed by other types of employees.
“Because the department is concerned that the 2013 regulations might not reflect the best interpretation of the (Fair Labor Standards Act) and might discourage essential companionship services by making these services more expensive, the department is proposing to return to the 1975 regulations,” the Labor Department said in its new proposed rule.
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Doing so, would reduce the cost of home care services and expand access, the agency said.
The proposal indicates that the Obama-era rule led to increased costs for home care providers without resulting in greater earnings for workers. At the same time, the Labor Department said that turnover in the industry remains “stubbornly high” and growth has slowed since the rule was finalized.
“The department has tentatively determined that the 2013 rule has had negative effects on the ground which are hindering consumer access to home- and community-based services,” the proposal states.
If the Labor Department finalizes the proposed change, the agency said that as many as 3.7 million home care workers employed by third-party agencies could become exempt from existing minimum wage and overtime requirements, though some would likely remain covered under state laws. Another 1.5 million independent providers who are currently exempt could see their responsibilities increase, the agency said.
According to the proposal, the average rate for home health and personal care aides was $16.12 per hour in 2023, so it’s unlikely that eliminating minimum wage protections would affect worker earnings, but the loss of overtime pay might.
“The Obama-era rule removing the longstanding exemption from overtime pay for in-home caregivers forced families and seniors to pay more for care when they simply couldn’t afford it — while caregivers had to juggle more patients just to earn the same income,” said U.S. Rep. Tim Walberg, R-Mich., who chairs the House Education and Workforce Committee. “I am glad the Trump administration is taking steps to remove regulations that placed an undue burden on patients and their families and limited affordable home care options.”
The proposal is facing pushback, however, from groups representing in-home caregivers and those they serve.
The Paraprofessional Healthcare Institute, which advocates for the direct-care workforce, said that the proposed rule would lead to increased turnover, higher costs for recruitment and reduced quality of care and will “further destabilize an already undervalued workforce.”
Meanwhile, the Autistic Self Advocacy Network has spoken out against the proposal and the Disability and Aging Collaborative and the Consortium for Constituents with Disabilities are jointly circulating a sign-on letter opposing the change.
“This proposed rule would worsen the existing workforce crisis by making home care jobs even less stable, with lower wages and fewer overtime protections,” said Tory Cross, associate director of federal policy and government relations at Caring Across Generations, an organization advocating for caregivers and people who rely on them. “That instability translates into higher job turnover and fewer people entering the field as direct care workers which ultimately reduces quality and access to care for people with disabilities.”
Officials with the American Network of Community Options and Resources, or ANCOR, which represents disability service providers across the nation, said they had no comment when asked about the proposal.
The proposed rule is up for public comment through Sept. 2.
