Thousands of home health care workers across Pennsylvania could see a change in their wage structure due to a proposed Department of Labor regulation that would reverse a 2013 update to the Fair Labor Standards Act.

Under the proposed change, the act would revert to its pre-2013 language that allowed home health care providers to exempt their workers from federal minimum wage and overtime pay requirements under the “companionship exemption.”

The change comes amid a broader deregulatory effort at the Department of Labor aimed at cutting “regulatory burdens, spur job creation, and fuel economic opportunity for American workers and businesses,” according to a July 1 release.

“One of President Trump’s very first actions was directing his cabinet to dismantle the mountain of outdated rules that have held back American workers and businesses for far too long,” Secretary of Labor Lori Chavez-DeRemer said in the release. “The Department of Labor is proud to lead the way by eliminating unnecessary regulations that stifle growth and limit opportunity. These historic actions will free main street, fuel economic growth and job creation, and give American workers the flexibility they need to build a better future.”

More than 400,000 seniors and medically fragile Pennsylvanians currently use home health care services, according to the Pennsylvania Homecare Association, which advocates for an industry already experiencing a workforce “crisis” due to declining Medicaid reimbursement rates that provide critical funding.

Over 112,000 home health care shifts go unfulfilled every month under the current situation, according to an April release from the Homecare Association.

According to association CEO Mia Haney, the 2013 change put a strain on the industry due to higher private pay costs that “severely limited” access to around-the-clock care in many instances.

“Reversing this rule could have a meaningful impact by allowing agency employers to once again claim certain overtime exemptions, specifically when a home care worker lives with the person receiving care,” she said, “this would provide more flexibility to serve individuals with complex needs and better manage rising labor costs.”

This is because the current regulation has led to strict caps on overtime hours home care employees can work in order to limit overtime pay at an increased rate, Haney said.

According to Haney, “restoring this exemption could allow workers to take on additional hours, provide more consistent care, and reduce worker burnout and turnover.”

Haney said that across the board, Department of Labor policies should support an expansion of access to reliable home-based care.

“This proposed rule highlights a broader issue: Medicaid reimbursement rates have not kept pace with rising wages, regulatory demands, and the true cost of delivering care. Without sustainable funding, even positive regulatory changes like this one will fall short,” she said.

Public comments on the proposed rule change must be submitted to the Department of Labor by Sept. 2.

Mirror Staff Writer Conner Goetz is at 814-946-7535.