Joint Employment in Consumer-Directed Programs

Last week, the Department of Labor (DOL) held a briefing to address joint employment in consumer-directed programs as outlined in the Federal Register in October 2013. Officials reviewed an Administrator’s Interpretation from last month that defines companionship services, clarifies the duties test, and limits the use of the companionship services exemption and the live-in domestic service employee overtime exemption to individuals or their representatives only. Most workers in consumer-directed programs will have a third-party joint employer and therefore must be paid in compliance with the Fair Labor Standards Act’s minimum wage and overtime requirements. However, the exemption may be applied in situations in which the consumer is the sole employer. Third party employers may no longer claim exemptions under this rule. The Centers for Medicare & Medicaid Services recently released guidance on state options for Medicaid reimbursement for overtime and travel costs that may result from the Final Rule. For more information, please visit for a fact sheet and other information related to minimum wage and overtime pay for direct care workers.

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