Healthcare

Lawmakers Introduce Bill To Reject Companionship Exemption

Policymakers have introduced a bill that would guarantee federal minimum wage and overtime protections for home care workers, an issue that has caused some division within the home care industry.

The legislation, called the Fair Wages for Home Care Workers Act, would reject the companionship exemption, which the U.S. Department of Labor (DOL) proposed reinstating in July. Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Patty Murray, D-Wash., who introduced the bill, said the legislation would address what they described as “a longstanding injustice” — the exclusion of home care workers from the Fair Labor Standards Act.

“Congress has a moral obligation to protect those who care for our most vulnerable communities, and home care workers are the backbone of our long-term care system,” Ocasio-Cortez said in a statement. “I am proud to introduce the Fair Wages for Home Care Workers Act with Senator Patty Murray to finally codify the minimum wage and overtime protections our home care workers deserve and prevent future attacks on their livelihoods.”

The companionship exemption dates to 1974, when Congress amended the Fair Labor Standards Act to exclude certain home care workers providing companionship services from minimum wage and overtime protections. In 2013, the DOL updated regulations to limit this exemption. Under the second Trump administration, the DOL proposed reinstating it.

The bill received support from 85 organizations, including PHI, ANCOR and the National Domestic Workers Alliance (NDWA).

LeadingAge, the association of nonprofit providers of aging services, including home health, is among the voices opposing the companionship exemption.

On the other hand, home care advocacy organizations, the National Alliance for Care at Home and the Home Care Association of America, have supported the companionship exemption. 

Supporters of the companionship exemption have argued that the overtime protections reduce access to home care, because agencies cut back on companionship services to avoid overtime expenses. Supporters have also stated that caregivers support working overtime to support the clients they care for.

“Many caregivers were willing to forgo overtime pay, knowing the fixed incomes most older adults rely on,” Bob Roth, managing partner at Cypress HomeCare Solutions, said in a July LinkedIn post. “This issue isn’t just about labor policy; it’s about consistency and dignity in care.”

The post Lawmakers Introduce Bill To Reject Companionship Exemption appeared first on Home Health Care News.

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