Advocacy Supports DOL’s Rescission of Companion Care Rule

On July 2, 2025, the U.S. Department of Labor (DOL) published a notice of rulemaking to rescind a 2013 final rule on the companion care exemption to minimum wage and overtime under the Fair Labor Standards Act (FLSA). The 2013 final rule narrowed this exemption for companion care workers, prohibiting third-party employers such as home care agencies and home care registries from utilizing this exemption. This proposed rule would reinstate this exemption for companion care workers.

Advocacy had previously commented on the proposed companion care rule in 2012. Advocacy commented that DOL’s initial regulatory flexibility analysis was deficient because it underestimated the economic impact of this rule on small businesses. Small businesses were concerned that they would incur significant compliance costs to restrict staff hours to minimize overtime and lose their live-in business.

On August 30, 2025, Advocacy submitted a comment letter supporting this rescission and commending DOL for this action.  Based on Advocacy’s estimates using DOL data, the rescission could save affected entities $947 million or higher in compliance costs over the next 10 years.

COMMENT LETTER

Companion Care Rule (PDF, 215KB)

CONTACT:

Janis Reyes

EMAIL:

janis.reyes@sba.gov

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