The Trump administration has proposed rescinding an Obama-era rule that extended wage protections to home care workers. This proposal could affect over 3 million workers who care for seniors and individuals with disabilities in their homes.
Background of the Rule
The 2013 Obama-era rule granted home care workers coverage under the Fair Labor Standards Act (FLSA), providing them with rights such as the federal minimum wage ($7.25 per hour) and overtime pay for hours worked over 40 per week. These protections have been available to most other workers since 1938.
The original intent of the 2013 rule was to ensure direct care workers received fair compensation.
Administration's Justification
The Trump administration's Labor Department states that the 2013 rule has not yielded its intended benefits and has instead created issues for employers, workers, and the families they serve.
The Home Care Association of America, an industry group representing 4,300 agencies, supported a lawsuit against the rule's implementation.
After the rule took effect in late 2015, the group reported that workers' earnings decreased because agencies capped hours at 40 per week to manage costs for families and states funding care through Medicaid.
This led to caregivers seeking additional jobs and disrupted long-term relationships with families, while agencies faced increased recruitment and training expenses.
Arguments Against Rollback
Labor advocates argue that removing wage protections will exacerbate an already high annual turnover rate of approximately 80% in the industry.
Organizations like PHI, a nonprofit focused on caregiver wages, contend that the rollback signals that home care workers—a workforce predominantly composed of women (85%) and people of color (two-thirds)—are not considered deserving of basic employment protections.
They emphasize that the work, which includes assistance with eating, bathing, and wound care, is significant and not merely "companionship services."
Economic Context and Impact
Home care is characterized by low wages, with a national median wage of $16.78 per hour in 2024. PHI estimates that half of these workers rely on public assistance.
While the Home Care Association of America acknowledges the dedication of caregivers and desires higher pay, they point to limited funds, especially from Medicaid, as a primary challenge, arguing that families cannot afford overtime rates.
Since the Obama rule's implementation, FLSA coverage has allowed workers to file complaints, leading to nearly $158 million in back wages paid to home care workers, according to PHI's analysis.
With an estimated 681,000 new home care jobs expected in the next decade, health economists argue that reducing job quality through the removal of protections in a labor shortage situation is counterproductive to increasing access to care.
Some states, like New York, have their own Domestic Workers' Bill of Rights, which ensures overtime and minimum wage regardless of federal FLSA coverage. Caregivers continue to advocate for recognition as legitimate workers deserving of these protections.