Companionship Exemption Final Rule: Does It Change Overtime in Your State?
DOL plans to let agencies use the companionship and live-in exemptions again. In states whose own law requires overtime for home care workers, nothing changes. How to check yours.
By Caregiver Scheduling Team ·
Short answer. As of November 6, 2026, home care agencies still can’t claim the companionship or live-in exemptions under federal rules (29 CFR 552.109). DOL proposed restoring them in July 2025 and lists a final rule for November 2026 (RIN 1235-AA51). Even if it’s finalized, state law that requires overtime for these workers still applies.
General information, not legal advice. Rules change and depend on your facts. Confirm with the official source linked in each section or an employment attorney before acting.
What would the final rule change?
The proposal would rescind the 2013 rule. Third-party employers like agencies could again claim the companionship exemption (no minimum wage or overtime) and the live-in exemption (no overtime) under federal law. It would also remove the 20% cap on care tasks for exempt companions (RIN 1235-AA51). Status updates are on the rule tracker.
Does it change anything in my state?
Work through these three questions:
- Does your state have its own overtime law? If not, federal law controls, and the final rule matters directly. Our state overtime pages list each state’s rule.
- Does that state law cover domestic, companion or home care workers, including those employed by agencies? Many state laws copy the federal exemptions; others don’t. Read the state’s wage-and-hour exemptions, not just the overtime threshold.
- Do Medicaid contracts, union agreements or wage parity laws require overtime anyway? Some do.
If the answer to 2 or 3 is yes, keep paying overtime.
States to check first
These states have laws that specifically address domestic or home care workers. Confirm the current text with the state labor agency before changing pay.
| State | Law to read | Where to confirm |
|---|---|---|
| California | Domestic Worker Bill of Rights (Labor Code 1450–1454) and IWC Wage Order 15 | CA Labor Commissioner |
| New York | Domestic Workers’ Bill of Rights (Labor Law 170; 12 NYCRR 142). Live-in overtime after 44 hours | NY Department of Labor |
| Massachusetts | Domestic Workers Bill of Rights (G.L. c. 149, §190) | MA Attorney General Fair Labor Division |
| Illinois | Domestic Workers’ Bill of Rights Act amendments to the Minimum Wage Law | IL Department of Labor |
| Hawaii | Act 248 (2013) extended state minimum wage and overtime to domestic service workers | HI Department of Labor and Industrial Relations |
| Oregon | Domestic worker overtime provisions in ORS chapter 653 | Oregon BOLI |
| Colorado | COMPS Order (covers domestic employees) | Colorado Division of Labor Standards and Statistics |
For every other state, start with the DOL state minimum wage table and then the state’s own exemption list.
What should agencies do the week the rule publishes?
- Read the effective date. Final rules usually take effect 30 to 60 days after publication.
- Don’t change pay before the effective date.
- Get written advice on your state law before removing overtime.
- If you do change pay, give caregivers written notice, update offer letters, and expect turnover risk.
- Check payer contracts and the Medicaid 80/20 rule, which ties payments to caregiver compensation (80/20 status).
FAQ
Has DOL stopped enforcing the 2013 rule? DOL told its investigators in July 2025 to stop enforcing the agency bar (Field Assistance Bulletin 2025-4). Workers can still sue privately, and state law still applies.
Would live-in caregivers lose minimum wage? Under the live-in exemption, no. It removes federal overtime only.
Does this affect the overtime tax deduction? Yes. Overtime that isn’t FLSA-required isn’t qualified overtime. See no tax on overtime for agencies.
Change log
- 2026-11-06 Page published. As of this date the Federal Register shows only the July 2, 2025 proposed rule; we will update this page when a final rule is published.
Living page. Last updated November 6, 2026.