Current Investigations

New Mexico DD Waiver Providers: DSP Misclassification Investigation

I am currently investigating potential overtime violations at Developmental Disabilities Waiver providers in New Mexico. Specifically, I am looking at whether DD Waiver agencies in New Mexico have misclassified Direct Support Professionals as independent contractors to avoid paying overtime, and whether those workers are owed significant back pay under federal law and the New Mexico Minimum Wage Act.

What prompted this investigation?

I already have an active federal lawsuit against a New Mexico DD Waiver provider, Downes v. Lessons of Life, LLC, where the Department of Labor found that a single agency owed 193 workers more than $1 million in back wages. That case revealed a pattern: DD Waiver agencies in New Mexico routinely hire DSPs as "independent contractors," assign them to specific homes and clients, set their schedules, control how care is delivered, and then pay a flat rate with no overtime, even for weeks where DSPs worked 50, 60, or more hours.

The same structure appears to exist at other DD Waiver agencies across the state. I am now gathering information about additional providers, including QLS and similar residential care companies, to evaluate whether additional lawsuits are warranted.

What is the legal basis for these claims?

Under federal law, independent contractor status depends on economic reality, not what an employer calls you. Courts consider factors like who controls the work, whether the worker is economically dependent on the company, whether the work is central to the company's operations, and whether the worker has a real opportunity for profit or loss based on their own business decisions.

DSPs at DD Waiver agencies typically do not pass this test as contractors. They work assigned shifts, serve assigned clients, follow care plans the agency developed, and depend on the agency for their income. That economic reality makes them employees under federal law, regardless of any independent contractor agreement they signed.

When the federal overtime law applies, workers are entitled to overtime pay (at least 1.5 times the regular rate) for every hour worked beyond 40 in a workweek. They may also be entitled to an equal amount in liquidated damages, potentially doubling the recovery. Attorneys' fees are available as well.

What should you do if you worked as a DSP at a New Mexico DD Waiver Agency?

I want to hear from you, especially if you:

• Worked for QLS or a similar DD Waiver provider in New Mexico
• Were classified as an independent contractor (paid on a 1099, not a W-2)
• Worked more than 40 hours per week without receiving overtime pay
• Were assigned to specific residential homes and clients by the agency
• Were required to follow care plans and schedules set by the company

The consultation is free and confidential. I will evaluate your situation and tell you honestly whether I think you have a viable claim. If I take your case, I handle it on a contingency fee basis. You pay nothing unless there is a recovery, not even costs.

The statute of limitations is running. Every week you wait is a week of overtime that may fall outside the recoverable window. Please contact me now.