October 13, 2015 is the implementation date of the United States Department of Labor application of the Fair Labor Standards Act (FLSA) to Domestic Service regulation. This Final Rule makes several changes that will broaden the scope of the FLSA. The Department (DOH) acknowledges that the changes will have an impact on workers providing consumer directed personal assistance services.

The Department is developing rates designated for the increased costs related to FLSA. It is our intention to promulgate rates retroactively to the effective date of the Final Rule, October 13, 2015.

In an effort to mitigate the impact to consumers in the interim, the Department will disburse the second installment of five million dollars that was set aside to ease the impact of the rule. Approximately, $2.5 million dollars will be awarded to eligible Fiscal Intermediaries. Fiscal Intermediaries that previously received CDPAS FLSA BIP Pool Payments and have not yet expended the awarded funds are advised to so.

Fiscal Intermediaries that contract with local departments of social services and managed care plans for the provision of consumers directed personal services should complete the attached application and return it to DOH at the e-mail address listed on the application. Applications must be received by November 2, 2015 to be eligible for funding.