Domestic Workers Minimum Wage and Overtime Rights

Federal wage rules for household employees depend on who the employer is and which exemption applies.

Domestic workers are generally covered by the federal minimum wage. Overtime depends on who employs them and whether an exemption applies. Under the Fair Labor Standards Act (FLSA), a live-in worker hired directly by a household must receive at least the minimum wage but can be exempt from overtime. A home care agency or other third-party employer cannot claim the live-in or companionship exemptions.

At LawfareClaims.org, we publish plain-language guides to wage claims, and we tie each rule here to the U.S. Department of Labor (DOL) page that states it. The federal rule covering household services in a private home took effect January 1, 2015, according to the DOL domestic service final rule fact sheet.

At the federal minimum of $7.25 per hour, a 40-hour week comes to $290, and each overtime hour at time and a half comes to about $10.88 ($7.25 × 1.5 = $10.875). A worker may be entitled to a higher wage under state law, so the federal figures work as a floor.

How Minimum Wage and Overtime Apply to Domestic Workers

Federal law sets a minimum wage for domestic service workers, and it requires overtime unless an exemption applies to the employer. The federal minimum wage is $7.25 per hour, per DOL fact sheet #79B. Overtime under the FLSA is one and one-half times the regular rate for hours over 40 in a workweek.

Two exemptions change that default. The live-in exemption removes overtime only, and only when a household is the employer. The companionship exemption removes both minimum wage and overtime for a household employer, and it is lost in any week the work crosses certain limits.

Agencies sit outside both exemptions. A worker employed solely or jointly by a third party, such as a home care agency, must be paid minimum wage and overtime for all hours worked.

Side by side, the federal rule sorts out like this. A household-employed live-in worker gets the minimum wage without overtime. An agency-employed live-in worker gets both. A household-employed companionship worker gets neither in a week that stays inside the limits.

This page covers federal rules only. Questions about tips, immigration status, room-and-board deductions, or a state's own wage law fall outside this guide, and a licensed attorney in your state can answer them.

DOL fact sheets are general information and do not carry the force of law. Fact sheet #79B is dated September 2013, and a new DOL rule or an updated fact sheet would change the answers here, so look for updates on the fact sheet #79B page.

Who Counts as a Domestic Service Worker and Who the Employer Is

A domestic service worker under the 2015 rule is an employee who performs household services in a private home. The rule applies whether a household employs the worker directly or a third party, such as a home care agency, does the employing.

The type of employer decides which exemptions are available at all. An individual, family or household can claim the live-in overtime exemption and the companionship exemption when their conditions are met. A third-party employer cannot claim either one.

Joint employment splits the answer between two employers. When an agency and a household both employ the same worker, the agency owes minimum wage and overtime for all hours worked, while the household may still claim an exemption that applies to it, per the DOL final rule fact sheet.

An agency's overtime duty does not disappear because a family also directs the daily work.

If you are unsure whether you are an employee in the first place, our comparison of independent contractor vs employee status covers that question.

The Live-In Overtime Exemption and Sleep-Time Agreements

The live-in exemption lets a household employer skip overtime pay, but it never removes the minimum wage. A live-in worker employed by an individual, family or household must be paid at least the federal minimum wage for all hours worked, per fact sheet #79B.

The DOL counts a worker as live-in in two situations. One is residing on the employer's premises permanently, meaning the worker lives, works and sleeps there seven days a week. The other is residing there for extended periods, meaning five days a week and 120 hours or more.

Some arrangements fall outside that definition. A worker on 24-hour shifts who does not reside in the home is not a live-in worker, and neither is someone on a temporary stay. The live-in overtime exemption is written for live-in workers, so it does not reach those arrangements.

A sleep-time agreement limits which hours count as work. The employer and worker may agree to exclude a bona fide meal period, a sleep period and complete off-duty time from hours worked, as described in DOL fact sheet #79B.

Interruptions change the math. If a call to duty interrupts sleep or off-duty time, the interruption counts as hours worked, and the agreement does not remove the duty to pay for every hour actually worked.

The employer must keep a copy of the sleep-time agreement. If you sign one, keep your own copy too, and write down each night your sleep was interrupted for work.

The Companionship Exemption and Its Three Limits

The companionship exemption lets a household employer pay no minimum wage and no overtime to a companionship worker, but only in weeks where the work stays within the limits in DOL fact sheet #79A.

Care services that exceed 20 percent of the worker's total hours that week, per consumer, end the exemption for that week. So do medically related services that typically require training. So does household work that primarily benefits other members of the household.

When any of those happens, minimum wage and overtime apply to all hours worked in that week. In a 40-hour week, 20 percent is 8 hours, so care services above 8 hours for one consumer would end the exemption for those 40 hours.

Third-party employers cannot use the companionship exemption at all. An agency that employs a companionship worker owes minimum wage and overtime for all hours worked.

Coverage can shift from one week to the next as duties shift. A daily note of the tasks you performed, and for whom, is the record that shows whether a given week crossed a limit.

Hours Worked and Recordkeeping Rules

Employers of domestic service workers must track and record all hours worked, per the DOL final rule fact sheet. The employer may have the worker record hours and submit them.

Failure to keep accurate records may result in back wage liability for the employer.

Keep your own log whether or not the employer keeps one. Write down start and stop times, meal and sleep breaks, nights interrupted by a call to duty, and the tasks done each day.

Each part of that log ties to a rule on this page. Interruption notes connect to the sleep-time rule, task notes connect to the companionship limits, and weekly totals show any hours over 40.

Filing Deadlines under 29 U.S.C. § 255

An FLSA wage action must be commenced within two years after the cause of action accrued, or within three years for a willful violation, under 29 U.S.C. § 255(a).

Whether a violation is willful is a legal question for an attorney to assess against your facts. Plan around the two-year limit rather than counting on the third year.

Write down the date the pay problem started and the date of each short paycheck. An attorney will need those dates to measure the two-year and three-year windows.

The sources on this page do not say whether a complaint pauses the lawsuit deadline, so ask a licensed wage-and-hour attorney before relying on a complaint to protect your time.

How to Report Unpaid Domestic Worker Wages

You can file a confidential complaint with the DOL Wage and Hour Division (WHD) by calling 1-866-487-9243 (1-866-4USWAGE), 8 a.m. to 5 p.m. in your time zone. WHD says many of its investigations begin from complaints, and the process is described on the WHD complaints page.

WHD states that an employer cannot retaliate against a worker for exercising these rights, including filing a complaint or cooperating with an investigation. Our guide to workplace retaliation explains that protection, and our wrongful termination page covers firings.

A licensed wage-and-hour attorney can review exemptions, joint employment and willfulness against your records, and can tell you whether state law gives more than the federal rule. Our page on contingency fee arrangements explains that payment model, and our unpaid wages guide covers pay problems beyond household work.

Gather your pay records and hour log, then call WHD or use our find a lawyer page to reach a licensed attorney who handles domestic workers minimum wage and overtime rights.

Frequently Asked Questions

Do nannies get overtime?

Nanny overtime depends on who employs the nanny and whether an exemption applies. A nanny employed by a household who meets the DOL live-in definition can be exempt from overtime but must receive at least the minimum wage. A nanny employed solely or jointly by an agency is owed overtime at one and one-half times the regular rate for hours over 40 in a workweek.

Are live-in domestic workers entitled to overtime?

Live-in domestic workers employed by an individual, family or household are exempt from overtime but must be paid at least the federal minimum wage for all hours worked. Live-in workers employed solely or jointly by a third party, such as a home care agency, must be paid minimum wage and overtime for all hours worked. Workers on 24-hour shifts who do not reside in the home are not live-in workers.

Does it matter if an agency employs the worker instead of the family?

Yes, the employer type changes the overtime answer. Third-party employers such as home care agencies cannot claim the live-in overtime exemption or the companionship exemption. When an agency and a household jointly employ a worker, the household may still claim an exemption that applies to it.

Does a sleep-time agreement mean nights are unpaid?

A sleep-time agreement can exclude a bona fide sleep period, meal periods and complete off-duty time from hours worked. Any interruption for a call to duty counts as hours worked. The agreement does not remove the duty to pay for every hour actually worked, and the employer must keep a copy of it.

Does home health aide overtime follow the same rules?

Home health aide overtime turns on the same employer and exemption questions. An aide employed by an agency is owed minimum wage and overtime for all hours worked, and agencies cannot claim the companionship exemption. For a household employer, the companionship exemption is lost in any week the worker performs medically related services that typically require training.

How long do I have to file a domestic worker unpaid wages claim?

An FLSA lawsuit must be filed within two years after the cause of action accrued, or three years for a willful violation, under 29 U.S.C. § 255(a). The sources on this page do not state a separate deadline for a WHD complaint. A licensed attorney can measure the window against your dates.

Can an employer retaliate for a wage complaint?

No. WHD states that an employer cannot retaliate against a worker for exercising their rights, including filing a complaint or cooperating with an investigation. WHD also states that complaints are confidential, and you can reach WHD at 1-866-487-9243.