Part 3 of 5 of our Practice Compliance Series: FLSA Rules, COMAR Mandates, and the Contract Clause Myth
Ask almost any Licensed Graduate Professional Counselor (LGPC) or Licensed Master Social Worker (LMSW) about their early private practice experience, and a familiar, painful pattern emerges.
They are hired as W-2 employees, but paid strictly when a client sits in the chair. Meanwhile, they are required to attend mandatory administrative huddles, peer reviews, and weekly clinical supervision sessions without receiving a single dollar on their paychecks for that time.
When associates ask why those hours are uncompensated, practice owners often offer a familiar defense: "We provide your clinical supervision toward independent licensure for free, so that education serves as your compensation." Other practices simply point to a line in their employment agreement stating that meetings and supervision are uncompensated.
Under federal and Maryland wage and hour laws, both explanations are legally invalid. Forcing non-exempt associate therapists to work unpaid administrative or supervision hours is not a mentorship perk; it is illegal wage theft.
The Four-Prong Federal Rule: Why Mandatory Meetings Must Be Paid
Under the Fair Labor Standards Act (FLSA), an employer cannot pick and choose which working hours count toward payroll.
Federal regulations under 29 C.F.R. § 785.27 establish strict standards regarding meetings, lectures, and internal training. An employer can only withhold pay for a meeting or training program if all four of the following legal criteria are met:
Attendance occurs outside of the employee's regular working hours.
Attendance is entirely voluntary.
The course, meeting, or lecture is not directly related to the employee's job.
The employee performs no productive work during attendance.
If even one of these criteria fails, the time is legally compensable work time.
When a group practice requires an associate clinician to attend a monthly all-staff meeting, clinic training, or administrative huddle, attendance is mandatory and directly related to the operation of the clinic. Criteria 2 and 3 fail immediately. Demanding that an employee attend mandatory gatherings without pay directly violates federal and state wage statutes.
The Supervision Double Standard
The argument that "free supervision equals pay" collapses under legal and clinical examination.
Clinical supervision within an operating group practice is not detached, academic coursework. It is active risk management, quality control, and clinical direction.
During supervision:
The supervisor reviews active practice charts and treatment plans.
The supervisor directs crisis management protocols and safety plans, protecting the practice from vicarious liability.
The supervisor oversees the quality of care delivered under the clinic's brand.
Furthermore, under the Code of Maryland Regulations (COMAR 10.42 for social workers and COMAR 10.58 for professional counselors), active clinical supervision is an absolute statutory prerequisite. Without an approved supervisor of record, the practice cannot legally bill commercial health insurance or Medicaid for the associate's clinical sessions.
Because clinical supervision directly benefits the group practice and is legally required for the associate to perform their job, the hours spent in supervision are compensable working hours. Expecting an associate to surrender two to four hours each week to protect clinic operations without pay is an exploitative labor practice that labor boards routinely penalize.
The Contract Clause Myth: Why Employers Cannot Contract Around the Law
When practice owners learn about these requirements, they often ask: Can an employer simply write a clause into the employment contract stating that meetings and supervision are uncompensated?
The answer is an unequivocal no.
Under federal and Maryland law, an employer cannot legally contract away an employee's statutory wage rights. Decades of United States Supreme Court precedent, established in landmark rulings such as Brooklyn Savings Bank v. O'Neil, confirm that rights under the Fair Labor Standards Act are non-waivable.
An employee cannot legally agree to work for free. Even if an LGPC or LMSW willingly signs an employment agreement stating that meetings, chart documentation, and supervision are uncompensated, courts and labor boards treat that clause as completely null and void.
A signed contract that violates wage law does not protect an employer. It simply serves as written evidence documenting an intentional wage violation.
The Severe Penalties of Unpaid Wage Claims
When an associate eventually leaves a practice and discovers their rights were violated, filing a wage complaint with the Maryland Department of Labor or the U.S. Department of Labor triggers immediate financial consequences.
Under the Maryland Wage Payment and Collection Law:
The state invalidates any unpaid meeting or supervision contract clauses immediately.
Auditors calculate every single hour the clinician spent in mandatory meetings, administrative work, and supervision over the preceding two to three years.
The practice faces liability for back wages, statutory interest, and administrative fines.
Under Maryland Labor and Employment Code Section 3-507.2, courts can award treble damages (up to three times the total unpaid wages) plus mandatory attorney fees if the employer cannot prove the withholding was the result of a bona fide dispute.
Mentoring the next generation of clinicians requires treating them with professional and legal respect. If an activity is mandatory, or if it is required for your practice to bill and operate ethically, it must be paid.
Research References:
Code of Federal Regulations. (2024). 29 C.F.R. § 785.27: Lectures, meetings and training programs; General. Wage and Hour Division, U.S. Department of Labor.
Code of Maryland Regulations. (2024). COMAR 10.42.02: Board of Social Work Examiners, General Regulations and Supervision Requirements. Division of State Documents.
Code of Maryland Regulations. (2024). COMAR 10.58.12: Board of Professional Counselors and Therapists, Requirements for Supervised Clinical Experience. Division of State Documents.
Maryland General Assembly. (2024). Maryland Wage Payment and Collection Law. Md. Code Ann., Lab. & Empl. §§ 3-501 through 3-509.
United States Supreme Court. (1945). Brooklyn Savings Bank v. O'Neil, 324 U.S. 697.
