# Amicus Curiae Brief — Long Island Care at Home, Ltd. v. Coke

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386007_0707%3A10

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2005
- **Citation:** 545 U.S. 1103

## Text

No. 04-1315 FILED
APR 2 9 2005
IN THE

OFFICE OF THE CLERK
SUPREME COURT OF THE UNITED STATES

LONG ISLAND CARE AT HOME, LTD. and
MARYANN OSBORNE,

Petitioners,

EVELYN COKE,
Respondent.

On Petition for a Writ of Certiorari to the United States
Court of Appeals for the Second Circuit

BRIEF OF AMICI CURIAE CITY OF NEW YORK
AND NEW YORK STATE ASSOCIATION OF
COUNTIES IN SUPPORT OF PETITION FORA
WRIT OF CERTIORARI

STEPHEN J.A. ACQUARIO, MICHAEL A. CARDOZO,

General Counsel, Corporation Counsel of the
Attorney for Amicus Curiae City of New York,

NYS Ass’n of Counties, Attorney for Amicus Curiae
111 Pine Street City of New York,
Albany, NY 12207 100 Church Street
(518) 465-1473 - New York, NY 10007

(212) 788-1159 or 1065

LEONARD J. KOERNER*

PAMELA SEIDER DOLGOW,

SUSAN CHOI-HAUSMAN,
of Counsel.

*Counsel of Record

April 29, 2005

eT LAS 6

TABLE OF CONTENTS
Page
DE I ovisidictcetkeric kines ll
Preliminary Statement. 0.0.0.6... .00ccccccccccspesessees i
Interest of the Amici Curiae.................cece0000e- 2
Summary of the Argumentt..............0..cccsesssesees 4

REASONS FOR GRANTING THE PETITION.... 5

I. THE ENFORCEABILITY OF THE
THIRD-PARTY EMPLOYER
REGULATION IS OF GREAT
Se NII i 6h bsavacanscannsedasanscnteen 5

A. Economic Implications of the Circuit’s
PUN, irctcuuatisasdecas vaedsenionndiadcien 5

ee EP een eee 6
Bs I MBS ic icsiceccessedsccsss 6
i a I iene a 8

B. Implications for the Provision of Care.... 8

.. Peevacy io ie Mome..................... 9
2: GOmmy OF Cate. o.oo... cc. eic.es... 10
3. Family Compatibility................... 11

I]. THERE IS A DIRECT CONFLICT IN THE
CIRCUITS AS TO THE DEGREE OF
DEFERENCE TO BE ACCORDED THE
THIRD-PARTY EMPLOYER
REGUL ADIGE. is cicsccsecocsssnpeevonstdstewves 12

Ill. ©THE SECOND CIRCUIT’S DECISION IS
ERRONEOUS AND MISAPPLIED THIS
COURT’S PRECEDENTS REGARDING
THE DEFERENCE TO BE ACCORDED
ADMINISTRATIVE DETERMINATIONS. 13

CONCTLERSIOIN i ii ciavadadstapecsae. A iediantnaaceles 18

TABLE OF AUTHORITIES

Cases . Page
Alaska Dep’t of Envtl. Conservation v. Envtl.

Protection Agency, 540 U.S. 461 tsa 16
Barnhart v. Walton, 525 U.S. 212 (2002) .o..eecccccccccccscceoee.. 15
Batterton v. Francis, 432 U.S. 416 ROPE Prciidiincxessaditeadioiied 16

Chevron U.S.A., Inc. v. Natural Resources Defense
Council, Inc., 467 U.S. 837 ERS noe 12-14

Christensen v. Harris County,
529 U.S. 576 Cg, EEE LCDS RMT 12-13, 16

Johnston v. Volunteers of Am.., Inc.,
213 F.3d 559 (10th Cir. 2000),

cert. denied, 531 U.S. 1072 (2001)............0........... 12
Metropolitan Stevedore Co. v. Rambo,
I oc 16

Skidmore v. Swift & Co..
323 U.S. 134 Ee aievinuienccennniacstssenvasassceasiche

United States v.. Mead Corp.,
Re I ia asc cnsancnasescosececces..ccc; 12,14

Washington State Dep’t of Social and Health Servs. v.

Guardianship Estate of Keffeler,
re i 15-16

ill

Yellow Transp., Inc. v. Michigan,
BEF We ai chcacdiedibbnsceilinisindinisddactseannincion 16

Statutes and Other Authority

29 C.F.R. 552.109...... PEO? SS BRR ee! SP SERENE NO Be Te 2
CREO MO a a 2
Richard J. Pierce, Admin. L. Treatise (4"" ed. 2002).......... 15

1V

No. 04-1315

IN THE
SUPREME COURT OF THE UNITED STATES

tad

LONG ISLAND CARE AT HOME, LTD. and
MARYANN OSBORNE,

Petitioners,

EVELYN COKE,
Respondent.

On Petition for a Writ of Certiorari to the United States
Court of Appeals for the Second Circuit

BRIEF OF AMICI CURIAE CITY OF NEW YORK
AND NEW YORK STATE ASSOCIATION OF
COUNTIES IN SUPPORT OF PETITION FOR A
WRIT OF CERTIORARI

ee

PRELIMINARY STATEMENT

The City of New York (the “City”) and the New
York State Association of Counties (“NYSAC”) submit
this brief in support of the petition for a writ of certiorari in
this case. Both parties have consented to the filing of this
brief, and their consent letters are being filed herewith.'

' Counsel for the parties in this case did not author this
brief in whole or in part. No person or entity, other than
amici curiae and their counsel, made a monetary
contribution to the preparation and submission of this brief.

]

INTEREST OF THE AMICI CURIAE

The City and NYSAC have a significant interest
in having this Court grant the petition and determine the
validity of 29 C.F.R. 552.109(a) -- a longstanding United
States Department of Labor regulation (hereinafter the
“third-party employer regulation”) that applied the
“companionship services” exemption in the Fair Labor
Standards Act (“FLSA”), 29 U.S.C. §213(a)(15), to
employees engaged in providing companionship services
and “employed by an employer or agency other than the
family or household using their services.”

The provision of health care services in the home
has increased significantly in recent years. Since the early
1980's, hospital services have become much more
intensive, and daily costs have escalated enormously. At
the same time, many aspects of care formerly provided in
hospitals and in long term care institutions can be
effectively provided in the home. Vulnerable individuals
most frequently prefer to receive care at home if possible,
and this has resulted in the development of a number of
programs to facilitate their ability to do so. The cost of
these programs is largely covered by various forms of
health insurance, including Medicaid.

The City, the nation’s largest municipality,
oversees a Medicaid-funded program, which provides
personal care services to approximately 50,000 low-income
frail elderly and disabled individuals, annually, through the
use of approximately 60,000 personal care aides,
commonly referred to as home attendants. These personal
care services are delivered through contracts with over 90
provider agencies throughout the City.

Pursuant to -this program, Medicaid-eligible
individuals can obtain assistance with activities of daily
living (bathing, toileting, transferring, walking and
nutrition) when these services are medically needed to

2

allow them to continue to live at home. Personal care
services must be ordered by a client’s personal physician,
and the determination of the medically-necessary level of
care to be provided to Medicaid clients is the responsibility
of the City’s Human Resources Administration.

Medicaid clients may be authorized to receive
personal care services for periods of time ranging from 2 or
3 hours, two or three times per week, to continuous
oversight, 24 hours each day, for impaired individuals. A
home attendant may be required to sleep in the home and,
in many ways, become a member of the household. The
home attendant may accordingly be scheduled to deliver
service for many more than 40 hours per week, and while
these services must be medically required, they also require
a substantive level of compatibility with the client and the
client’s family.

As a result of the third-party employer regulation,
prior to the Second Circuit’s decision declining to enforce
that regulation, the home attendants were not subject to the
wage and overtime requirements of the FLSA, and the
annual cost to the Medicaid program of the City’s personal
care services program was approximately $1.6 billion
dollars.

NYSAC is a not-for-profit municipal corporation
incorporated pursuant to the laws of the state of New York.
The sole membership of NYSAC consists of the 62
counties in New York state. NYSAC is the only statewide
municipal association representing elected county
executives, county supervisors, legislators, representatives,
commissioners, and administrators from the 62 counties,
including the 5 counties comprising the City. NYSAC’s
activities involve essential governmental functions, and all
of its activities, including the filing of this amicus brief,
accrue to the benefit of all county governments in the state.
Outside the City, each of NYSAC’s member counties

3

provides Medicaid-funded personal care services in its
respective jurisdiction throughout the state.

The Second Circuit’s decision declining to enforce
the third-party employer regulation will have serious
ramifications for the Medicaid-funded programs, in terms
of both cost and the provision of care, for everyone
involved in the program, including the government, the
providers of service, the home attendants, and individuals
receiving personal care _ services. Therefore, the
enforceability of the third-party employer regulation is of
vital importance to the City and NYSAC.

SUMMARY OF THE ARGUMENT

The petition should be granted for three reasons.
First, the enforceability of the third-party employer
regulation is of profound importance, because it has serious
implications for the Medicaid-funded personal care services
programs, such as those administered by the City and the
counties. The Second Circuit’s decision is expected to
tremendously increase the annual cost of the programs, and
it is unclear whether additional funding will be available to
cover these cost increases. While the costs arguably couid
be limited somewhat by capping each home attendant’s
hours of service at 40 hours per week, the intimate and
ongoing nature of the home attendant/client relationship, as
well as clients’ general unwillingness to have more than
one or two attendants in the home, limit the ability to-have
multiple home attendants providing care to a client without
jeopardizing the client’s welfare.

Second, there is a direct conflict in the Circuits as to
the degree of deference to be accorded the third-party
employer regulation, with the result that the Tenth Circuit
has upheld the regulation, while the Second Circuit
declined to enforce the regulation. Third, the Second
Circuit’s decision is erroneous and misapplied this Court’s

4

precedents regarding the amount of judicial deference to be
accorded administrative determinations.

This case merits this Court’s guidance and the
exercise of this Court’s supervisory powers.

REASONS FOR GRANTING THE PETITION

I. THE ENFORCEABILITY OF
THE THIRD-PARTY
EMPLOYER REGULATION IS
OF GREAT IMPORTANCE.

The Second Circuit’s decision, declining to enforce
the third-party. employer regulation, is of profound
importance, in that it has serious implications for the
Medicaid-funded -personal care services programs
administered by the City and the counties in New York
state, in terms of both cost and the provision of care.

A. Economic Implications of the
Circuit’s Decision

In the City alone, the Second Circuit’s decision is
estimated to increase the cost of the City’s Medicaid-
funded personal care program to the elderly and disabled
by over $279 million annually.? The City’s Medicaid
funding will need to increase from $1.592 billion to about
$1.871 billion annually in order to sustain its current client
service levels. As set forth below, the estimated additional
$279 million annual cost consists primarily of: (1) overtime
pay at time and one-half for home attendants who work in
excess of 40 hours weekly; (2) an increase in billable and
overtime hours for 24 hour daily care provided by “sleep-

? In the Circuit, the City had estimated an increased annual

cost of over $263 million. The new numbers reflect the
City’s most recent figures.

in” home attendants; and (3) travel time, which will now
have to be paid to attendants who serve more than one
client and travel between cases.

1. Paid Overtime

The City currently authorizes the delivery of
approximately 105,778,000 hours of service annually to
approximately 45,000 personal care service clients.
Services to most of these clients are rendered by not-for-
profit providers operating under the invalidated third-party
employer exemption. The City’s Human Resources
Administration staff estimates that approximately 24,000
clients require more than 40 hours of personal care services
per week and that 19% of the personal care service hours
provided in City Fiscal Year 2004 were provided by
attendants working in excess of 40 hours weekly.

These hours would be subject to overtime pay under
the Second Circuit’s decision. The estimated incremental
cost of overtime is approximately $103 million annually.

2. “Sleep-In” Cases

Among the innovations deveioped by the City to
facilitate delivery of personal care services to its frail and
vulnerable residents is a service modality known as “sleep-
in” service. Under this approach, a home attendant stays
with a client for a 24-hour period, during which time the
attendant is on paid duty for 12 hours, and is off duty for
the remaining 12 hours, and is provided with sleeping
accommodations during this time. The “sleep-in” attendant
may be roused up to three times during the unpaid hours,
and so is available to assist the client with special needs,
such as toileting or turning, during the night-time hours.
Typically these services are provided by two home
attendants during the week -- one of whom stays with the
client for five 24-hour periods, and the other for the

6

remaining two. This program is well accepted by both
clients and home attendants, and reflects the close
relationship that is appropriately developed between them.

The City currently has approximately 5,400 clients
who receive 24 hour daily care from home attendants who
“sleep-in”. These sleep-in home attendants are present 24
hours daily and receive an hourly wage for each of 12
hours; they are not compensated for the 12 hour “sleep-in”
portion of the day but, rather, receive a daily shift
differential. Provider agencies are authorized to bill
Medicaid for 84 hours weekly (12 hours daily x 7 days) for
these cases.

Pursuant to the Second Circuit’s decision, the non-
paid “sleep-in” hours would be limited to 8 hours daily
under the FLSA. See 29 C.F.R. §785.22 (explaining
generally that, where an employee is required to be on duty
for 24 hours or more, a bona fide sleeping period of not
more than 8 hours may be excluded from hours worked and
that interruptions of sleep by a call to duty must be counted
as hours worked). Accordingly, the provider agency
service payment authorization for these cases would have
to be increased from 12 to at least 16 hours daily. These
additional 4 hours daily for these cases will increase the
billable hours for the City’s contracted home attendant
provider agencies by 7,841,660 hours annually, with a
resulting additional annual cost to the government of
approximately $120.9 million for straight-time service.

Further, the additional paid hours on these sleep-in
cases will also have an overtime impact since the home
attendants presently servicing these cases are already
working hours that would be subject to overtime pay if this
Court’s ruling is upheld. Accordingly, the additional hours
subject to wages on the sleep-in cases will also be subject
to paid overtime. The cost of the overtime (i.e., the

additional one-half-time cost) for these hours is about $40
million annually.

3. Travel Time

The City’s Medicaid-funded personal care service
program includes approximately 12,300 clients who receive
an average of 21 hours of service weekly. Many of the
home attendants service more than one of these cases in
order to earn a full-time wage.

Presently, home attendants’ wages are limited to
hours actually worked; the home attendant is not paid for
the time spent traveling between cases. Pursuant to the
Second Circuit’s decision, the time spent in transit by these
employees will be subject to wages under the FLSA. See
29 C.F.R. §785.38 (explaining generally that travel time
spent by an employee in travel as part of his principal
activity, such as travel from job site to job site during the
work day, must be counted as hours worked). The City’s
Human Resources Administration staff conservatively
estimates the annual cost to government as about $13.3
million.

In short, the economic impact of the Second
Circuit’s decision is tremendous.

B. Implications for the Provision of
Care

It is unclear whether the additional funding to cover
the increased costs will be available.

As to the personal care services program overseen
by the City, 50% of the cost is covered by the federal
government, 40% by the state, and 10% by the City. The
City negotiates the hourly rates for each provider
prospectively and then submits them to the state for

8

approval. The City has submitted a request to the state for
increased rates, in light of the Second Circuit’s decision,
and is awaiting the state’s determination. If the request is
not approved and additional funding is not appropriated by
the state in its budget, the providers will have no funding
source to pay the additional costs to comply with the
FLSA. :

It might be argued that some of the costs outlined
above could be avoided by limiting the hours of service
provided to an individual client by a home attendant to a
maximum of 40 hours per week. Thus, for example, a
client requiring 24 hour coverage would be served by
multiple home attendants. However, there are substantive
reasons why this is not readily doable. The relationship
between a home attendant and the client, while not limited
to delivery of companionship, nonetheless is one of special
intimacy and confidentiality. Building such a relationship is
not a simple matter, and clients are in general unwilling to
enter into such a relationship with more than one or two
individuals. Some of the issues affecting this relationship
are discussed below.

1. Privacy in the Home

Although the home attendant’s role is to provide
paraprofessional service to a client, the service setting
differs significantly from a hospital or a doctor’s office, in
that the service is rendered in the client’s home, and the
nature of the service is intensely personal. The home
attendant spends up to 24 hours each day in the client’s
home, tending to needs of an extremely personal nature,
such as bathing or toileting. It is therefore essential for the
home attendant to build a trusting personal relationship
with the client, as otherwise the attendant’s presence will
be seen as being overly intrusive, and the client will not
cooperate or allow the necessary level of personal
intervention.

Home attendants are trained and assisted to present
themselves professionally to the client. However, to carry
out personal care services appropriately also requires
acceptance of the home attendant by the client. In many
instances it takes a considerable time to build such a
relationship, and clients often are very unwilling to enter
into such a relationship with more than one or two such
individuals. Experience shows that clients often are
unwilling to accept alternative coverage when a home
attendant takes vacation or sick leave, preferring to suffer
lack of what may often be very necessary care until the
person with whom the client is comfortable returns from
leave.

2. Continuity of Care

Although the services provided by the home
attendant are limited to assistance with activities of daily
living, clients receiving this care are frail elderly and/or
disabled, and the service has been determined to be
medically necessary. Clearly, all clients are impaired to
some extent through ongoing illness and disability, and
these problems may well result in additional, immediate
clinical needs. The home attendant is required to become
familiar with the client’s medical circumstances, to assist
the client in making physician visits, and to promptly
identify and report any changes in the client’s clinical
status. The home attendant must engage in ongoing
interaction with the client regarding the client’s health
status: to do this requires that the client is comfortable with
the home attendant and has confidence in sharing intimate
information. The home attendant must be knowledgeable
about the client’s clinical arrangements, and must be able to
contact the relevant medical professional if necessary.

3. Family Compatibility

In many instances, clients live in the home with }
other family members. The home attendant’s services are
limited to caring for the client, but the attendant must be
able to render these services in a way that does not result in |
problems in the household. Building such domestic
relationships can be difficult and time-consuming. In other
instances, the client may live alone. It then becomes the
responsibility of the home attendant to assure that the client
maintains adequate relationships with children, siblings,
etc., and to assist with family relationships in a way that
meets the client’s requirements and expectations. Such
relationships can be demanding and difficult, and the home
attendant is required always to place the client’s needs
before those of the family members who may be placing
pressures on both the attendant and the client. If the
client’s family is unwilling to allow multiple attendants in
the home, the family may insist that the client is transferred
to a nursing home. :

In short, the inherently intimate and ongoing nature
of the relationship between the home attendant and the
client, as well as clients’ unwillingness to have multiple
attendants in the home, limit the ability to provide multiple
attendants for each client, in order to keep costs down.

This Court should review the Second Circuit’s
decision, given the serious implications in terms of both
cost and the provision of care for the Medicaid-funded
personal care services programs administered by the City
and the counties in New York State.

1]

li. THERE IS A DIRECT
CONFLICT IN THE CIRCUITS
AS TO THE DEGREE OF

DEFERENCE TO BE
ACCORDED THE THIRD-
PARTY EMPLOYER
REGULATION.

The Second Circuit’s decision as to the degree of
deference to be accorded the third-party employer
regulation conflicts directly with that of the Tenth Circuit
in Johnston v. Volunteers of Am., Inc., 213 F.3d 559 cio"
Cir. 2000), cert. denied, 531 U.S. 1072 (2001). In
Johnston, the Tenth Circuit accorded the third-party
employer regulation deference pursuant to this Court’s
decision in Chevron U.S.A., Inc. v. Natural Resources
Defense Council, Inc., 467 U.S. 837 (1984) and upheld the
regulation. See Johnston, 213 F.3d at 561-62. In this case,
by contrast, the Second Circuit declined to accord the third-
party employer regulation Chevron deference, applied the
less-deferential standard of Skidmore v. Swift & Co., 323
U.S. 134 (1944), and declined to enforce the regulation. See
Coke, Pet App. at 19a-29a.

While the Second Circuit attempted to distinguish
Johnston on the ground that it pre-dated this Court’s
decision in United States v. Mead Corp., 533 U.S. 218
(2001) (see Pet. App. at 21la-22a), as explained by this
Court, “Chevron did nothing to eliminate Skidmore’s
holding that an agency’s interpretation may merit some
deference whatever its form,” or “to eliminate Skidmore’s
recognition of various justifications for deference
depending on statutory circumstances and agency action.”
Mead, 533 U.S. at 234, 236-38.

Indeed, in cases following Chevron but pre-dating
the Tenth Circuit’s decision in Johnston, this Court applied
the less-deferential Skidmore standard, in reviewing certain
administrative determinations. See, e.g., Christensen v.

12

Harris County, 529 U.S. 576, 586-87 (2000) (applying the
less-deferential Skidmore standard in reviewing a
Department of Labor opinion letter). Thus, the fact that the
Tenth Circuit’s decision in Johnston pre-dated this Court’s
decision in Mead does not in any way minimize the direct
conflict between the Circuits.

III. THE SECOND CIRCUIT’S DECISION
IS ERRONEOUS AND MISAPPLIED
THIS COURT’S PRECEDENTS
REGARDING THE DEFERENCE TO
BE ACCORDED ADMINISTRATIVE
DETERMINATIONS.

The Second Circuit’s decision is erroneous and
misapplied this Court’s precedents regarding the deference
to be accorded administrative determinations.

In Chevron U.S.A., Inc. v. Natural Resources
Defense Council, Inc., 467 U.S. 837 (1984), this Court
upheld a regulation of the Environmental Prot ‘ction
Agency, on the ground that it was a permissible
construction of the Clean Air Act. This Court explained
that, if Congress has not directly spoken to the precise
question at issue and has delegated to an agency to
elucidate a specific statutory provision, the agency’s
regulation, which is then considered legislative, must be
given controlling weight, unless it is arbitrary, Capricious,
or manifestly contrary to the statute. Jd. at 842-44. This
Court noted that the fact that the agency has from time to
time changed its interpretation does not mean that the
agency’s interpretation is not entitled to deference. This
Court emphasized that an agency, to engage in informed
rulemaking, must consider varying interpretations and the
wisdom of its policy on a continuing basis. Jd. at 863-64.
Additionally, this Court noted that an agency to which
Congress has delegated policymaking responsibilities may,
within the limits of its delegation, properly rely on the

13

incumbent administration’s view of wise policy to inform
its judgments. /d. at 865-66.

In United States v. Mead Corp., 533 U.S. 218
(2001), this Court held that a tariff classification in a U.S.
Customs Service ruling letter regarding day planners was
not entitled to Chevron deference. This Court explained
that Chevron deference applies when the statute is
ambiguous, Congress has delegated authority to the agency
to make rules carrying the force of law, and the agency
interpretation was promulgated in the exercise of that
authority. Jd. at 226-27, 229.

This Court, in holding that Chevron deference did
not apply, relied on the facts that there was no indication
that Congress meant to delegate authority to Customs to
issue ruling letters with the force of law and that the ruling
letter: was not subject to a notice and comment procedure;
did not go beyond the specific case under review and did
not bind third parties; was subject to modification without
notice, except to those persons to whom the letter was
addressed; could be issued by any of 46 different Customs
offices, which issued approximately 10,000 to 15,000 such
letters per year; and did not have to be published. /d. at
223-24, 230-34.

In this case, pursuant to the above standards, the
third-party employer regulation was entitled to Chevron
deference. There is no dispute that the companionship
exemption expressly delegated authority to the Department
of Labor to define and delimit the terms “companionship
services” and “domestic service employment.” See 29
U.S.C. §213(a)(15); Coke, Pet. App. at 20a, 23a.
Additionally, as explained by petitioners, the Department
of Labor third-party employer regulation was promulgated
in the exercise of that authority, where: the third-party
employer regulation expressly relies on the companionship
exemption; Part 552 of the regulations indicates that the

14

companionship exemption was the authority for all of the
regulations in that part; and the Department of Labor, in its
rulemaking and brief, has proclaimed that the third-party
employer regulation was a legislative regulation
promulgated pursuant to the Congressional delegation. See
Pet. at 18-22.

Unlike in Mead, the administrative determination at
issue here is a regulation, not a letter ruling, and carries the
force of law, in that it: is published and was subject to the
notice and comment procedures; goes beyond one case and
binds all employees of third-party employers; and has been
in force for thirty years without change, notwithstanding
that Congress has on numerous occasions amended 29
U.S.C. §213, which contains the companionship
exemption. Thus, the Second Circuit misconstrued Mead
in erroneously declining to accord the third-party employer
exemption Chevron deference. See also Richard J. Pierce,
Admin. L. Treatise §6.4 at 324-25 (4"" ed. 2002) (explaining
that legislative rules have binding effect, are required to be
promulgated pursuant to notice and comment procedures,
are within the scope of rulemaking authority conferred by
Congress, and impose distinct obligations on members of
the public).

Indeed, further supporting the proposition that the
Second Circuit misapplied this Court’s decision in Mead is
the fact that, following Mead, this Court does not appear to
have declined Chevron deference to any similar regulation.
See, e.g., Washington State Dep't of Social and Health
Servs. v. Guardianship Estate of Keffeler, 537 U.S. 371,
382, 390 (2003) (holding that Chevron deference was owed
to the regulations of the Commissioner of Social Security);
Barnhart v. Walton, 535 U.S. 212, 217-22, 224-25 (2002)
(same and explaining that Chevron was the appropriate
standard, given “the interstitial nature of the legal question, :
the related expertise of the Agency, the importance of the
question to the administration of the statute, the complexity

15

of that administration, and the careful consideration the
Agency has given the question over a Jorg period of time”);
Yellow Transp., Inc. v. Michigan, 537 U.S. 36, 41, 45-48
(2002) (according Chevron deference to _ Interstate
Commerce Commission regulations, which were issued
pursuant to an express delegation by Congress, after notice
and comment proceedings, and differed from the regulation

originally proposed).

Chevron deference appears to have been declined
oniy to internal guidance memoranda and interpretations
contained in publicly available operating instructions for
processing social security claims, which were not the
product of formal rulemaking. See Alaska Dep't of Envitl.
Conservation v. Envtl. Protection Agency, 540 U.S. 461,
487-88 (2004); Washington State Dep't of Social and
Health Servs., 537 U.S. at 385-86.

This post-Mead treatment of such regulations is
consistent with other pre-Mead cases. See, e.g., Christensen
v. Harris County, 529 U.S. 576, 586-88 (2000)
(emphasizing that “[o]f course, the framework of deference
set forth in Chevron does apply to an agency interpretation
contained in a regulation”); Metropolitan Stevedore Co. v.
Rambo, 521 U.S. 121, 137 n.9 (1997) (noting that no
deference was required to the interpretation of the
Administrative Procedure Act by the Director of the Office
of Workers’ Compensation Programs, where, inter alia,
that interpretation was not embodied in any regulation or
similar binding policy pronouncement to which Chevron
deference would apply); Batterton v. Francis, 432 US.
416, 425-26 & n.9 (1977) (a pre-Chevron case noting that
courts are not required to give effect to interpretive
regulations, but emphasizing that where Congress expressly
delegated to an agency to prescribe standards or interpret
Statutory terms, the agency adopts regulations with
legislative effect, which are entitled to review under the
arbitrary and capricious standard).

16

In short, the Second Circuit erred and misapplied
this Court’s precedents when it declined to accord Chevron
deference to the Department of Labor’s third-party
employer regulation. The third-party employer regulation
is reasonable, especially where, as noted by the District
Court and explained by the-Department of Labor, part of
the reasoning behind the FLSA companionship services
exemption is to allow those in need of such services to find
assistance at a price they can afford and prevent them from
unnecessariiy being forced into long-term care institutions.
As emphasized by the District Court, whether the services
are provided by direct hiring or through the use of an
agency, the objective is still the same: to allow the
procurement of companionship services without being
required to meet the minimum wage and overtime
provisions of the FLSA. See Pet. App. at 52a, 63a, 70a-7 1a.

In order to avoid repetition, the amici curiae adopt
the other arguments made by petitioners in support of a
grant of certiorari.

17

CONCLUSION

THE PETITION FOR A WRIT OF

CERTIORARI
GRANTED.

STEPHEN J.A. ACQUARIO,

General Counsel,

Attorney for Amicus Curiae
NYS Ass'n of Counties,

111 Pine Street

Albany, NY 12207

(518) 465-1473

SHOULD BE

Respectfully submitted,

MICHAEL A. CARDOZO,

Corporation Counsel of the
City of New York,

Attorney for Amicus Curiae
City of New York,

100 Church Street

New York, NY 10007

(212) 788-1159 or 1065

LEONARD J. KOERNER*
PAMELA SEIDER DOLGOW,
SUSAN CHOI-HAUSMAN,

of Counsel.

*Counsel of Record

18

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386007_0707%3A10. Public record. Not legal advice.
