PHi: A New Federal Proposal Would Further Undercut Home Care Workers’ Labor Rights
The U.S. Department of Labor has proposed a rule that simplifies the process for employers to classify home care workers as independent contractors, a move critics argue will lead to widespread misclassification. This change would strip workers of essential labor protections—such as minimum wage, overtime pay, and workers' compensation—costing individual aides an estimated $7,229 to $10,247 annually in lost compensation. By shifting the burden of payroll taxes and insurance to the workers, the proposal risks destabilizing a fragile care system already struggling with high turnover and recruitment challenges. PHI and other advocates are urging the public to submit comments by April 28, 2026, to oppose the rule and protect the rights of this predominantly female and diverse workforce.
