2025 Companionship Services Exemption:
What Agencies and Registries Need to Know
The U.S. Department of Labor (DOL) has introduced major changes that could reshape the home care industry. With Field Assistance Bulletin (FAB) 2025-4 and a proposed rule to rescind the 2013 restrictions on the Companionship Services Exemption (CSE), agencies and registries are navigating both new opportunities and heightened risks.
What Happened
On July 2, 2025, the DOL issued a proposed rule that would reinstate the broader exemptions originally set in 1975. If finalized, this rule could fundamentally reshape caregiver classification nationwide. On July 25, 2025, the DOL announced it would suspend enforcement of the 2013 Obama-era rule that prohibited third-party employers, including nurse registries and home health agencies, from using the companionship exemption. This means that, during DOL investigations, caregivers such as CNAs, HHAs, companions, and homemakers may once again be exempt from federal minimum wage and overtime requirements.
Stakeholder Perspectives
- SBA Office of Advocacy applauds the proposed rescission for its potential to deliver significant cost relief, estimating $947 million saved over 10 years across small home care entities. They emphasize that the 2013 rule imposed “unnecessary burdens” on small agencies, including live-in care revenue losses and administrative complexity. – https://advocacy.sba.gov/2025/09/04/advocacy-supports-dols-rescission-of-companion-care-rule/
- A coalition under “The Alliance” voices support, stating the rule enhances access to home and community-based services nationwide—suggesting it could improve flexibility and reduce costs. – https://www.mcknightshomecare.com/news/alliance-throws-support-behind-companionship-exemption-as-states-aclu-speak-out-against-it/
- Home care agency representatives, cited by Jackson Lewis, point to benefits such as improved continuity of care for clients, reduced litigation risk, and enhanced scheduling flexibility—especially important for clients with dementia or high care needs. – https://www.jacksonlewis.com/insights/home-care-agencies-and-their-clients-could-get-relief-through-dol-proposal-reinstate-companion-live-exemptions
- Home Care Cooperatives warn that rolling back the 2013 Rule threatens worker-owners. The expanded exemption would undermine wage and overtime protections vital to cooperative business models. – https://ncbaclusa.coop/blog/u-s-department-of-labor-issues-proposed-rule-impacting-home-care-cooperative-workers-comments-due-september-2nd/
- Autistic Self Advocacy Network (ASAN) strongly opposes the proposal, warning it would degrade home care affordability and workforce stability. They assert it “threatens our independence and survival,” increases the risk of institutionalization, and undermines labor equity. – https://autisticadvocacy.org/?s=dol
- LeadingAge (serving nonprofit aging providers) criticizes the proposal for devaluing home care as casual companionship. Their position: these roles are professional, essential, and deserving of strong labor protections. They urge DOL to withdraw the rule and invest in workforce development instead. – https://homehealthcarenews.com/2025/09/leadingage-dols-companionship-exemption-proposal-would-exacerbate-home-care-staffing-crisis/
What It Means for Agencies and Registries
- Opportunities: Reduced overtime obligations, expanded definitions of “care,” and operational flexibility that can streamline billing and scheduling.
- Risks: Litigation exposure under the still-standing 2013 rule, stricter state labor laws, and potential workforce instability if caregivers feel their protections are being weakened.
How SwyftOps Helps
At SwyftOps, we recognize that compliance and scalability go hand-in-hand. Our platform is
designed to meet the unique needs of both agencies and registries:
- For Agencies: Scheduling and EVV tools, billing and payroll integration, and credential/training management to ensure compliance with payer and state requirements.
- For Registries: Referral-only design, compliance guardrails, and audit transparency to preserve client-caregiver independence.
- For Both: Scalable growth with unlimited caregivers and clients, documentation without liability, and pay calculations that are adaptable to state and federal regulations and accommodate business preferences.
- By aligning with the operational realities of both models, SwyftOps enables organizations to stay compliant, minimize liability, and focus on serving families.
Moving Forward
The 2025 changes to the Companionship Services Exemption present a pivotal moment for the
home care industry. Whether the proposed rule is finalized or withdrawn, agencies and registries
must remain agile. Investing in compliance tools, workforce retention strategies, and adaptable
systems will be critical to long-term success. At SwyftOps, we’re here to help you navigate these changes confidently.
Learn more and Book a Demo Today!
This article is provided for informational and educational purposes only. It does not constitute legal advice, does not create an attorney-client relationship, and should not be relied upon as a substitute for professional counsel. The analysis herein is based on federal regulatory guidance and publicly available information as of September 2025, including Field Assistance Bulletins and proposed rulemakings. Federal requirements are subject to change, and state or local laws may impose stricter or different obligations that supersede the discussion provided. Readers are encouraged to consult qualified legal counsel regarding the application of these developments to their specific circumstances.