As part of the Department of Labor's deregulation efforts, the agency proposes rolling back the 2013 regulations that enact minimum wage and overtime requirements for home health and personal care aides.
This change means that employers do not need to pay these workers at least the federal minimum wage. This is currently $7.25 an hour.
The proposed rules said there are approximately 3.7 million home health and personal care aides in the United States that could be affected by the changes.
According to the proposed rules, losing the right to receive the federal minimum wage will not affect most workers. Median hourly wages for Home Health and Personal Care Aides are well above the 2023 federal minimum wage, at $16.12 per hour.
“However, if they lose their right to receive overtime pay, home care workers can spend additional overtime on direct hours or reduce their pay for overtime they perform in the absence of this proposed rule,” the proposed rule read. “These potential effects – long and/or low payroll – can negatively impact morale for affected home care workers, leading to increased employee turnover and difficulties in attracting skilled workers.”
DOL hopes that the proposed regulations will increase access to care by reducing the costs of home care, reducing compliance costs, and encouraging more providers to participate or expand services in the home care market. The agency also said it would allow workers employed by multiple home care institutions and working for more than 40 hours in total to integrate employment with one institution and experience increased convenience.
Comment period on the proposed rules is open until September 2, 2025.
The proposal is part of a broader deregulation push aimed at reversing “the cost- and burdensome rules imposed under previous administrations.”
“One of Trump's first actions was to direct his cabinet to dismantle a mountain of outdated rules that have long held back American workers and businesses,” Labour Secretary Lori Chavez Deremar said in a July 1 statement. “The Department of Labor is proud to be able to lead the way by suppressing growth and eliminating unnecessary regulations that limit opportunities. These historic actions will free Main Street, fuel economic growth and job creation, and give American workers the flexibility they need to build a better future.”
