A new proposal from the Department of Labor marks a shift in federal policy governing in-home caregiving for elderly Americans. Specifically, it would rescind the 2013 Home Care Rule that has created hardships for families and caregivers for more than a decade. By reinstating a pre-2013 definition of companionship services, the proposed rule would allow many in-home caregivers to qualify for an exemption from overtime requirements once again. Furthermore, caregivers employed through third-parties, such as home care agencies or staffing firms, would once again be eligible for the exemption.
The Home Care Rule restricted the use of the companionship services exemption so that most in-home caregivers no longer qualify for an exemption from overtime under the FLSA. Under the rule, if in-home caregivers spend more than 20% of their weekly hours assisting an elderly or disabled person with getting dressed or preparing a meal, they forfeit their eligibility for the companionship exemption. The remaining 80% has to be devoted to social or recreational engagement, such as reading or conversation.
In addition to these constraints, the rule introduced onerous record-keeping requirements for households employing caregivers, including meticulously tracking and maintaining detailed records of hours worked. In-home caregivers employed through third-party employers, such as home care agencies or staffing firms, are also automatically excluded from the companionship exemption, further limiting care availability.
For many families, these regulatory burdens have resulted in fewer viable in-home care options, leading them to resort to institutionalized care, under-the-table arrangements, or attempting to provide the care themselves.
The Department of Labor’s recent proposal would help restore flexibility, affordability, and common sense to the in-home caregiving system, making it easier for seniors to access the support they need to age in place. While it won’t solve every problem related to long-term care for the elderly, it’s a crucial first step toward a better caregiving model.
Independent Women has been a leader in highlighting the consequences of these ill-conceived regulations. Our policy brief, “Free Caregivers and Repeal the Home Care Rule,” explores the rule in-depth and offers recommendations for improving the in-home care system. Our infographic offers a visual comparison of the regulatory framework of in-home care before and after the 2013 Home Care Rule, highlighting the burdens families face as a result.
Earlier this year, Independent Women’s Voice submitted a letter to the House Workforce Protections Subcommittee detailing the regulatory burdens the rule has placed on families and outlining the need for reforms. Independent Women’s Voice also applauded the reintroduction of the Ensuring Access to Affordable and Quality Home Care for Seniors and People with Disabilities Act, which would rescind the Home Care Rule and restore the previous definition of the FLSA’s companion services exemption standard for overtime pay.
As the population ages and the need for in-home care grows, policies should remove obstacles—not create them—to help families meet that need. The Department of Labor’s proposed reforms are a welcome and crucial step towards a more flexible, affordable, and functional in-home care system.