Application of the Fair Labor Standards Act to Domestic Service

Document 2025-12316 is a Proposed Rule published by the Department of Labor in the Federal Register on July 2, 2025. In 1974, Congress applied the Fair Labor Standards Act (FLSA) to "domestic service" employees, but exempted employees who provide "companionship services" from the minimum wage and overtime requirements and also exempted live-in domestic service employees from overtime. In 1975, the Department promulgated regulations defining companionship services and permitting third party employers to claim these exemptions. These regulations remained substantially unchanged for nearly 40 years. In 2013, the Department revised the regulations to narrow the definition of companionship services and prevent third party employers from claiming either of the exemptions. Because the Department is concerned that the 2013 regulations might not reflect the best interpretation of the FLSA and might discourage essential companionship services by making these services more expensive, the Department is proposing to return to the 1975 regulations. This summary can be found at https://www.regulations.gov by searching by the RIN: 1235-AA51. View the original at https://www.federalregister.gov/documents/2025/07/02/2025-12316/application-of-the-fair-labor-standards-act-to-domestic-service.

No. Document 2025-12316 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.