Wage & Hour Rules for Home Care Agencies in Texas

Minimum wage. $7.25/hour — the Texas Minimum Wage Act adopts the federal rate by reference, and state law preempts local minimum wages for private employers. Source ↗

Overtime. No state overtime statute; FLSA 1.5x over 40 applies to agency caregivers under the federal Home Care Rule. Source ↗

Sick leave preempted. No paid sick leave requirement anywhere in Texas: courts struck down Austin's and Dallas's ordinances, and HB 2127 (2023) broadly preempts local employment regulation — multi-city agencies face a single statewide rule set. Source ↗

Texas Payday Law. Non-exempt caregivers must be paid at least semi-monthly, and unpaid-wage claims can be filed with TWC within 180 days — a fast administrative enforcement track agencies should track alongside FLSA exposure. Source ↗

Consumer-directed services note. In Medicaid consumer-directed (CDS) arrangements the client is the employer of record for many wage-hour purposes, but licensed agencies acting as employers must apply full FLSA minimum wage, overtime, and travel-time rules. 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 ↗