Scheduling & Payroll

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

Reviewed by Beth Bledsoe, Care Business Advisor®, 28 Oct 2026. Rules change. Confirm with your state Medicaid agency before you act.

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