Department of Labor Offers Additional Interpretation on the Application of Employment Law on Consumer Directed Services

Last week the Department of Labor (DOL) provided additional interpretation on how the home care rules apply to consumer directed services funded by Medicaid. States and provider organizations had raised concerns about how the Fair Labor Standards Act (FLSA) requirements about who is an employer apply to these services. The interpretation will require each public or private agency that administers or participates in a consumer-directed, Medicaid-funded home care program to evaluate whether it is an employer under the FLSA. The interpretation provides several examples of how FLSA requirements apply to different situations. Guidance and additional information about the rule can be found on the DOL website.