Express Delegation Still Means What It Says: Sixth Circuit Upholds DOL Home Care Rule After Loper Bright

Why It Matters

The ruling confirms that existing DOL wage‑hour obligations for home‑care agencies remain enforceable, shielding employers from retroactive liability and signaling that courts will protect regulations rooted in express congressional authority. It also signals regulatory uncertainty as the DOL contemplates rule changes.

Key Takeaways

• Sixth Circuit affirms DOL overtime rule for third‑party home‑care agencies.
• Express delegation principle upheld despite Loper Bright decision.
• DOL’s 2025 proposal to rescind rule does not affect current liability.
• Employers in OH, MI, KY, TN must continue overtime compliance.
• Other circuits, like the Third, have reached similar rulings.

Pulse Analysis

The concept of express delegation—where Congress explicitly grants an agency the power to interpret statutory provisions—has long underpinned the Department of Labor’s authority under the Fair Labor Standards Act. In Loper Bright, the Supreme Court clarified limits on agency deference, but it did not overturn the fundamental principle that clear statutory language can vest interpretive power in an agency. This nuance is critical for sectors like home‑care, where the DOL’s 2013 rule narrowed exemptions for third‑party providers, mandating overtime pay for live‑in caregivers regardless of familial ties.

The Sixth Circuit’s decision on DOL v. Americare Healthcare Services reaffirmed that the 2013 rule stands on solid legal ground. By emphasizing that Loper Bright did not disturb express delegation, the court sent a clear signal to home‑care operators in the Sixth Circuit’s jurisdiction that existing wage‑hour obligations remain enforceable. The ruling is especially salient given the DOL’s July 2025 proposal to rescind the rule and its temporary suspension of enforcement. While the agency argues future compliance may shift, the appellate judgment makes clear that past conduct during the rule’s effective period is still subject to liability, compelling employers to maintain current payroll practices.

For employers, the decision underscores the importance of proactive compliance and legal vigilance. Companies should continue to calculate overtime for eligible home‑care staff and document work hours meticulously, even as the DOL contemplates regulatory revisions. Consulting HR and labor counsel before adjusting wage policies can mitigate the risk of retroactive penalties. Moreover, the parallel Third Circuit ruling suggests a broader judicial consensus, hinting that other circuits may follow suit, further solidifying the stability of express‑delegation‑based regulations across the nation.