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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

“Family Setting” Residential Care Facilities Offering Substance Abuse Recovery Programs

An employment relationship will not exist between residents and a residential care facility seeking to establish a “family setting” for treatment of individuals with alcohol of other drug problems when:

1. Residents perform tasks that are ordinarily done on a daily basis in a private home and are solely for the mutual benefit of the occupants of the home (institution).

2. Residents do not displace regular full-time employees by performing tasks that would ordinarily be done by full-time workers.

3. Enrollment in the treatment program is of relatively short duration (usually not longer than one year), as opposed to the long-term occupancy often associated with institutions caring for the mentally ill, mentally retarded, aged, or terminally ill.

4. The institution is relatively small, houses a limited number of residents and has no paid staff other than counselors.

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FLSA Section 14(c) Advisor | Wage and Hour Division