The Department has received questions from the public regarding how the Final Rule might affect certain “shared living” programs. These are programs, often funded by Medicaid or other public sources, called by different names such as adult foster care, paid roommate arrangements, or host homes, in which an individual receiving services and a direct care worker providing the services live together.

In response to these questions, we created the guidance on this page to help you determine whether a public entity or private third party agency, or an individual receiving services (or his or her family or other representative) is required to comply with the FLSA’s minimum wage and overtime requirements in paying a direct care worker who provides services through a shared living arrangement. The guidance also describes how certain FLSA principles (May sleep time be deducted? Does free rent count as wages?) apply to shared living arrangements.