Home Healthcare Services NAICS 621610

Mar 2, 2026 - Court Says LPNS, Home Health Aides Are Employees, Not Independent Contractors

• A Pennsylvania federal court ruled that a home health company misclassified its licensed professional nurses (LPNs) and home health aides (HHAs) as independent contractors. The ruling may make the company liable for millions of dollars in back wages, liquidated damages, and civil penalties under the Fair Labor Standards Act (FLSA), according to the Fisher Phillips law firm. The Pennsylvania Department of Labor sued Amazing Care, its owner, and its Director of Nursing for failing to pay LPNs and HHAs overtime under the FLSA. The company admitted it misclassified the HHAs but maintained that the LPNs were correctly classified as independent contractors, and thus not entitled to overtime. The court used the six-factor “economic realities” test to determine that the LPNs were employees. The test makes no single factor in the working relationship the determining factor for employers determining whether a worker is an independent contractor or employee. It analyzes whether the worker is in business for themselves (and is an independent contractor) or economically dependent on the hiring entity (and is an employee), according to Fisher Phillips. The company, its owner, and its Director of Nursing now face a trial to determine whether they failed to pay their misclassified employees any FLSA-required overtime.
• The non-medical home care sector, which reported several strong quarters of dealmaking in 2025, experienced the slowest quarter of dealmaking during the fourth quarter, according to M&A advisory firm Mertz Taggart. Q4 2025 saw only three deals close in the sector, on par with Q4 2024. Notable 2025 deals include Amivie’s acquisition of Atrio Home Health Care, NexPhase Capital’s acquisition of Always Best Care and Addus Homecare’s $7.4 million acquisition of Texas-based Del Cielo Home Care Services.

• Home-based care providers are facing reimbursement challenges on multiple fronts, according to Home Health Care News. The 2026 home health final payment rule, Medicaid funding cuts from the One Big Beautiful Bill and more have companies increasing their advocacy efforts, leaning into their strengths to navigate choppy reimbursement waters, and considering layoffs, according to Home Health Care News. Healthview CEO Steven Gonzalez told Home Health Care News that he is aware of the dangers of a 1.3% cut to home health payments. This is why the company spent time advocating on behalf of the industry on Capitol Hill in August 2025. CMS estimates that total Medicare payments to home health agencies will decrease by $220 million in 2026 compared to 2025, a net reduction of 1.3%. This reflects a 2.4% payment update offset by multiple downward adjustments, including permanent and temporary behavioral offsets and outlier recalibrations.
• Home healthcare industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first 11 months of 2025, according to the US Bureau of Labor Statistics (BLS). Home healthcare services increased prices slightly during the first 11 months of 2025, according to the BLS. Industry sales are forecast to increase at a 6.44% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.