Sample Shared Living Contract

ANCOR is pleased to announce the re-release of a Sample Shared Living Contract designed to be used as a template by providers entering into certain shared living arrangements, often called adult foster care or host homes.

This sample contract was originally developed by attorneys Petruccelli, Martin & Haddow, LLP, a Maine Law Firm, utilizing general contract law without regard to the specific requirements of local law in different State jurisdictions, with the assistance of the National Association of State Directors of Developmental Disabilities Services (NASDDDS) and ADvancing States. The sample contract and accompanying guidance memo have since been reviewed by attorneys at Petruccelli, Martin & Haddow, LLP to consider recent changes to federal regulation. After further analysis, it was determined the original sample contract remains consistent with current regulation although the materials have been updated for clarification and additional guidance.

The following sample contract is designed to conform with the changes made to 29 C.F.R. 795 “Employee or Independent Contractor Classification under the Fair Labor Standards Act” effective March 11, 2024, and with guidance provided by the U.S. Department of Labor. The sample is not designed to conform with the laws and regulations of individual States, or differences in state plans. It also does not address federal issues not connected to the classification guidance for FLSA. Paragraph 6 is a placeholder for specific provisions relating to other federal requirements and all state requirements. Neither the Sample Contract nor this memorandum can be relied on as legal advice or tax advice.

Guiding Memorandum

Sample Shared Living Contract

May 2025 Update:

The Department of Labor’s Wage and Hour Division (WHD) recently published new guidance advising WHD field staff on the analysis to apply when determining employee or independent contractor status for purposes of enforcing the Fair Labor Standards Act (FLSA). This guidance instructs agency investigators to stop applying the analysis from DOL’s 2024 rule entitled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act” in current enforcement matters but, instead, rely on the principles outlined in Field Assistance Bulletin No. 2025-1 and Fact Sheet #13.

The 2024 rule relies upon the following six factors in determining a worker’s FLSA classification:

• The worker’s opportunity for profit or loss depending on managerial skill;
• Investments by the worker and potential employer;
• The degree of permanence of work arrangement;
• The nature and degree of control the employer exercises over the worker;
• The extent to which the work performed is an integral part of the employer’s business; and
• The worker’s skill and initiative.

However, the new guidance issued by DOL directs WHD staff to use the decades-old “economic realities” test for worker classifications. That assessment utilizes a different set of factors in determining if a worker is economically dependent on a business to include:

• Degree of control;
• Permanency of the relationship;
• Investment in tools/equipment;
• Worker’s skill and initiative;
• Opportunity for profit or loss;
• Whether services are integral to the business; and
• Degree of independent business operation.

Although the 2024 rule remains in effect, there are a number of lawsuits pending in federal courts challenging its legality. As a result, DOL said it is “…reconsidering the 2024 Rule, including whether to rescind the regulation.”

ANCOR’s Government Relations Team will continue to monitor this situation and provide updates on any rulemaking activity on this topic.