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DOL Issues Guidance on “Shared Living” Compliance Under FLSA

March 31, 2014

The U.S. Department of Labor (DOL) released guidance on March 27 to help stakeholders determine whether an entity paying a direct-care worker through a “shared living” arrangement is required to comply with the Fair Labor Standards Act‘s (FLSA) minimum wage and overtime requirements.

DOL published a Final Rule to extend FLSA protections to home care workers effective January 1, 2015.

The following guidance was developed by DOL to respond to questions on how the new rule impacts direct-care workers in shared living programs:

In shared living programs, the individual receiving services and a direct-care worker providing the services live together, the DOL website explains. These programs are often funded by Medicaid or other public sources and go by various names, such as “adult foster care, paid roommate arrangements, or host homes.”

— by Deane Beebe

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