Do I have to pay my home care caregivers overtime?
Under the federal rule in place since January 1, 2015, agencies cannot use the companionship or live-in exemptions, so covered workers get overtime after 40 hours in a week. The Department of Labor proposed in July 2025 to bring those exemptions back, but that was only a proposal. Check current status and your state’s rules.
In 2013 the U.S. Department of Labor ruled that home care agencies, as third-party employers, can no longer claim the companionship or live-in exemptions. The rule took effect January 1, 2015. For covered workers, that means overtime pay once hours go over 40 in a week.
Things that change the answer:
- In July 2025 the Department of Labor proposed a new rule that would restore the old exemptions for agencies. A law firm summary says comments closed September 2, 2025, and that it is a proposal, not a final rule. Check whether a final rule has been issued since then.
- Even if the federal rule changes, stricter state laws still apply.
- Skilled nursing and licensed clinical work are not companionship services.
What this means for you: do not change how you pay people because of a proposal. Keep paying overtime as the current rule requires until a final rule is in effect and you have checked it with the Department of Labor Wage and Hour Division or an employment lawyer.
Georgia’s EVV guidance adds one more point: the state’s EVV system does not change DCH policy on authorized units or overtime pay. EVV records the visit. It does not decide pay.
Sources
- Application of the Fair Labor Standards Act to Domestic Service; Final Rule (Federal Register, Oct 1, 2013) · U.S. Department of Labor (Federal Register)
- Home Care: Information for Agencies · U.S. Department of Labor, Wage and Hour Division
- USDOL Proposed Rule to Restore the FLSA Companionship and Live-In Overtime Exemptions for Home Care Workers · Frier Levitt (law firm)
- Electronic Visit Verification (EVV) Provider-Related FAQs · Georgia DCH
Reviewed by Beth Bledsoe, Care Business Advisor®, 28 Oct 2026. Rules change. Confirm with your state Medicaid agency before you act.
How CareBravo®’s Scheduling & Payroll agent handles this
Want to see where this is costing your agency money? Four minutes, your agency’s name on the answer.