On July 29, 2014, the NRCPDS hosted a webinar on the the Department of Labor's Final Rule concerning Domestic Service Employment modified the “third party employment” regulation. The "third party employment" regulation prohibits third party employers of domestic service employees from claiming the companionship services exemption from minimum wage and overtime or the live-in domestic service employee exemption from overtime. This regulatory change will require each public entity or private agency that administers or participates in a consumer-directed, Medicaid-funded home care program to evaluate whether it may be a joint employer under the Fair Labor Standards Act (FLSA). In response to questions, the DoL issued a new Administrator’s Interpretation on June 19th and updated a fact sheet to help potential joint employers determine their obligations under the Fair Labor Standards Act. The guidance concludes that most, but not all, consumer-directed programs will have a third party employer such as a public entity, private agency, or non-profit organization.
At this webinar hosted by the NRCPDS, DoL representatives Michael Hancock and Melissa Murphy walked through this guidance, including several detailed hypothetical examples. Michael Hancock is Assistant Administrator for Policy in the Wage and Hour Division at the DoL. He began his current position in 2010. His previous positions in the Wage and Hour Division include Farm Labor Branch Chief, national co-coordinator for agriculture, and Interpretations Branch Chief. Melissa Murphy is a Senior Attorney in the Office of the Solicitor at the DoL. She works on appellate litigation, regulation writing and advice, and legal advice for a range of issues under the Fair Labor Standards Act.