In a Bloomberg Law article examining the growing scrutiny of substance abuse treatment programs that require participants to perform unpaid labor, co-chair of Goldberg Segalla’s nationwide Employment and Labor practice group and chair of the Health Care and Long-Term Care groups, Caroline J. Berdzik, discussed the complex employment law issues emerging from recent litigation and enforcement actions. The article explores when individuals enrolled in vocational rehabilitation and recovery programs may qualify as employees under federal and state wage-and-hour laws, a question that courts have addressed with varying conclusions in recent years.

Berdzik explained that these disputes extend beyond traditional wage-and-hour concerns and can implicate a range of legal issues depending on how the programs are structured. As Berdzik observed, “This impacts areas of the law that don’t frequently come across the desk of employment attorneys,” making these matters particularly complex.

The article also examined recent court decisions evaluating whether rehabilitation patients should be considered employees entitled to compensation for their work. Berdzik highlighted the potential risks for employers that partner with treatment facilities, particularly where participants perform work that primarily benefits a third party rather than supporting an individual’s recovery plan. As she told Bloomberg Law, “The safest defensible model is one where the work is genuinely and demonstrably therapeutic, individualized, and not sold to third parties.”

READ THE FULL ARTICLE HERE: “Vocational Rehab Patients Pushing Back Against Work Without Pay,” Bloomberg Law, September 23, 2026

MORE ABOUT GOLDBERG SEGALLA’S Caroline J. Berdzik:

Caroline J. Berdzik, co-chair of the firm’s nationwide Employment and Labor practice group and chair of the Health Care and Long-Term Care groups, devotes her practice to helping businesses, organizations, and management navigate the panoply of employment law issues, from proactive counseling through alternative dispute resolution and trial. She represents companies in diverse industries such as health care, transportation, retail, construction, insurance, and finance, as well as non-profit organizations and educational and religious institutions.