DOL reexamines 12 year-old wage protections for direct care workers

The Department of Labor is reviewing an Obama-era rule that protects direct care workers, specifically home health aides and certified nurse assistants, under the Fair Labor Standards Act’s minimum wage and overtime provisions.
“In a footnote in a court filing last month, the agency said it ‘intends to reconsider’ regulations issued in 2013 under President Barack Obama, which expanded the scope of minimum wage and overtime rules to cover so-called ‘direct care; workers such as home health aides and certified nursing assistants,” Bloomberg reported Tuesday.
According to the media outlet, the current case leans on a 2021 lawsuit against Akorn, OH-based Americare Healthcare Services LLC. A federal judge ruled in January 2025 that Americare Healthcare Services LLC and its owner, Dilli Adhikari, violated the FLSA by failing to pay overtime wages to home care aides. The judge ordered the company to pay $15 million in back pay and damages. The company is appealing.
“Americare has denied wrongdoing and is seeking a reversal, saying the regulations exceed the Labor Department’s authority because federal wage law makes exceptions for workers providing ‘companionship’ and for domestic staff who are caring for people they live with,” Bloomberg said.
According to Bloomberg, a person familiar with the Americare case said the Labor Department is looking into the rules regarding payment to direct care workers. The media outlet said the scrutiny is in line with President Trump’s push to repeal at least 10 existing agency’s rules and regulations.