Home Care Worker Overtime Pay: Does the Companionship Exemption Apply to You?
At a glance
Home Care Worker Overtime Pay: Does the Companionship Exemption Apply to You?: key takeaways
A visual summary of this post's main points. Read the article for context and limits.
Key point 1
Home care agencies and other third-party employers generally cannot use the companionship or live-in overtime exemptions under the Department of Labor's rule
Key point 2
A caregiver paid directly by a family may fall under an exemption, but only when the work fits the legal definition of companionship services
Key point 3
Live-in workers must still receive at least the minimum wage, and sleep and meal time can be deducted only under limited conditions
Home health aides, personal care aides and other caregivers often work long, irregular weeks. Many are told they are not owed overtime because their work is "companionship" or because they live in the home. In many situations that is not what the law says.
In this article
Key takeaways
Home care agencies and other third-party employers generally cannot use the companionship or live-in overtime exemptions under the Department of Labor's rule
A caregiver paid directly by a family may fall under an exemption, but only when the work fits the legal definition of companionship services
Live-in workers must still receive at least the minimum wage, and sleep and meal time can be deducted only under limited conditions
Keeping your own hours log is often the best proof when the employer's records are missing or wrong
Who Your Employer Is Matters Most
The Department of Labor's rule on third party employment says that a home care agency, staffing company or other third party cannot claim the companionship services exemption or the live-in exemption. If an agency employs you, you generally must be paid at least the minimum wage and overtime for hours over 40 in a workweek, even when you work in a client's home.
When a Family Employs You Directly
A household that hires a caregiver directly may be able to use an exemption listed in 29 U.S.C. 213, but only when the job fits the definition. Under 29 CFR 552.6, companionship services mean fellowship and protection for an older person or a person with an illness, injury or disability. Care such as bathing, dressing and feeding can be part of the job only when it is incidental, and it generally cannot be more than 20 percent of your hours. A worker who mostly provides hands-on care is not doing companionship work.
Live-In Workers
A caregiver who lives in the client's home and is employed directly by the household may be exempt from overtime, but not from the minimum wage. Pay for the hours you work still has to meet the minimum wage. Some employers deduct sleep time and meal time, and the rules for doing that are narrow. Time you are interrupted, or nights you do not get a full period of uninterrupted sleep, can count as work.
Common Problems
Flat daily rate
A set amount per day or per shift does not remove the right to minimum wage and, where it applies, overtime for every hour worked.
Labeled a contractor
Calling a caregiver an independent contractor does not control the outcome. Read our guide on the <a href="/blogs/independent-contractor-vs-employee-know-the-difference" class="text-primary underline">employee versus contractor tests</a>.
Travel between clients
Time driving from one client's home to the next during the workday is usually paid time.
Unpaid waiting and overnight time
Hours you must stay on duty can be working time. See our guide to <a href="/blogs/off-the-clock-work-unpaid-pre-shift-post-shift-and-break-time" class="text-primary underline">unpaid time at work</a>.
Overtime Back Pay
A worker who proves unpaid overtime can generally recover the unpaid amount and an equal amount in liquidated damages, plus attorney fees. The claim generally must be brought within 2 years, or 3 years if the violation was willful, and your state may allow more. Learn how to recover unpaid wages. Check the Department of Labor's domestic service page for current rules, because this area has changed several times.
What to Save
Your own hours log
A daily record of start and stop times, breaks, overnight interruptions and travel, written when it happens.
Pay records
Pay stubs, payment app history, checks and any note showing a flat rate.
The care plan or schedule
Documents showing the tasks you were assigned, which shows whether the work was care or companionship.
Messages from the employer or agency
Texts about schedules, extra shifts and any statement that you are not owed overtime.
Free Case Review
Whether you are owed overtime depends on who employs you, what you do and where you work. Our team can review your records at no cost, if you are eligible.
Are home health aides entitled to overtime?
Often yes. Under the Department of Labor's rule, agencies and other third-party employers generally cannot use the companionship or live-in exemptions.
What if I live in the client's home?
A live-in worker employed directly by the household may not get overtime, but must still receive the minimum wage for hours worked.
Does a flat daily rate mean I am not owed overtime?
No. A flat rate does not remove the right to minimum wage and, where it applies, overtime for every hour you work.
Can I be fired for asking about overtime?
No. The FLSA bars retaliation for complaining about unpaid wages, and state laws add protections.
Primary Sources
- 29 CFR 552.109: Third party employmentAccessed November 12, 2026
- 29 CFR 552.6: Companionship servicesAccessed November 12, 2026
- 29 U.S.C. 213: ExemptionsAccessed November 12, 2026
- U.S. Department of Labor: Domestic service workersAccessed November 12, 2026
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