Wage & Hour Rules for Home Care Agencies in Pennsylvania

Minimum wage (2026). $7.25/hour — unchanged since 2009; repeated legislative proposals to raise it (including a 2025-passed House bill) had not become law as of mid-2026. Market rates for caregivers run far above the legal floor. Source ↗

State overtime — no agency exemption. The PA Minimum Wage Act requires 1.5x over 40 and, per Bayada Nurses v. Commonwealth (Pa. 2010), its domestic-services exemption does NOT extend to third-party agencies — so even if the federal Home Care Rule were rescinded, Pennsylvania agencies would still owe state-law overtime. Source ↗

No fluctuating workweek. Under Chevalier v. General Nutrition Centers (Pa. 2019), Pennsylvania prohibits the FLSA's half-time 'fluctuating workweek' method — salaried non-exempt caregivers must get a full 1.5x premium on overtime hours. Source ↗

Local paid sick leave. No statewide sick leave, but Philadelphia (Promoting Healthy Families and Workplaces, paid at 10+ employees), Pittsburgh (Paid Sick Days Act), and Allegheny County each require accrued sick leave — multi-county agencies need location-based policies. Source ↗

Pay practices. The PA Wage Payment and Collection Law requires regularly scheduled paydays and allows 25% liquidated damages plus attorney fees for late or short pay; Philadelphia also bans salary-history questions. Source ↗

Direct care worker note. Pennsylvania home care agencies are licensed by the Department of Health, and Medicaid/CHC managed-care rate pressure makes wage-hour compliance (travel time between clients, overtime pooling across offices) a frequent audit and litigation issue. 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 ↗