Wage & Hour Rules for Home Care Agencies in California

Minimum wage (2026). $16.90/hour effective January 1, 2026 for all employers (indexed annually). Dozens of cities and counties set higher local minimums. Source ↗

Personal attendant overtime. Under the Domestic Worker Bill of Rights and Wage Order 15, 'personal attendants' (most home care aides) earn 1.5x after 9 hours in a day or 45 hours in a week. Caregivers who spend more than 20% of time on general household work fall under standard daily overtime (1.5x after 8/day, 2x after 12/day). Source ↗

Paid sick leave. Statewide paid sick leave: at least 40 hours/5 days per year (accrual 1:30 or front-load), covering home care employees. Source ↗

Pay transparency. SB 1162 requires employers with 15+ employees to include pay ranges in job postings and provide pay scales to employees on request. Source ↗

Home care licensing tie-in. Home Care Organizations must register caregivers under the Home Care Services Consumer Protection Act; misclassifying caregivers as independent contractors also violates California's strict ABC test (AB 5). Source ↗

FLSA coverage. Caregivers employed by home care agencies are covered by the Fair Labor Standards Act: federal minimum wage ($7.25) and overtime apply, because agencies are 'third-party employers' of domestic service workers. Source ↗

2013 Home Care Rule. Under the 2013 Home Care Rule (29 CFR 552.109), third-party employers such as home care agencies may NOT claim the FLSA companionship-services or live-in domestic worker exemptions — only the individual, family, or household using the services can claim them. Source ↗

Rescission proposal status (July 2026). On July 2, 2025 DOL proposed rescinding the 2013 Home Care Rule (comments closed Sept. 2, 2025), but as of July 2026 no final rule has issued — the 2013 rule remains legally in effect. Field Assistance Bulletin 2025-4 (July 25, 2025) directed WHD staff to pause enforcement of the rule against third-party agencies, but the FAB does not affect private lawsuits by caregivers, which can still recover back overtime plus liquidated damages. Source ↗

Sixth Circuit upholds rule (2026). In April 2026 the Sixth Circuit (DOL v. Americare Healthcare Services) upheld the 2013 Home Care Rule as a valid exercise of authority Congress expressly delegated to DOL, even post-Loper Bright. Practical takeaway for agencies: keep paying minimum wage and time-and-a-half overtime to caregivers unless and until a final rescission rule takes effect. Source ↗

Overtime & travel time. Agency caregivers must receive 1.5x their regular rate for hours over 40 per workweek, and travel time between clients during the workday is compensable hours worked (commuting to the first client and home from the last is not). Source ↗

Sleep time on 24-hour shifts. For shifts of 24 hours or more, an employer and live-in or shift caregiver may agree to exclude a bona fide sleep period of up to 8 hours if adequate sleeping facilities are provided and the worker usually gets at least 5 hours of uninterrupted sleep; interruptions for work must be paid. On shifts under 24 hours, all time on duty — including permitted sleep — is compensable. Source ↗