To amend the Fair Labor Standards Act of 1938 to clarify the exemption for houseparents from the minimum wage and maximum hours requirements of that Act, and for other purposes.

Amends the Fair Labor Standards Act of 1938 to exempt from minimum wage and overtime compensation requirements any employees of private nonprofit institutions who are employed to serve as houseparents for individuals who are: (1) abused, neglected, delinquent, orphaned, homeless, drug dependent, emotionally impaired children, or children who suffer from family dysfunction; (2) single, pregnant women ages 14 to 35; (3) single individuals ages 14 to 35 with children under the age of five; or (4) mentally handicapped or mentally ill.

Allows such exemption only if the individuals served have their primary residence at facilities of such institutions, and only if the houseparents: (1) reside with such individuals at such facilities for at least 72 hours a week; (2) receive free board and lodging from such enterprises; and (3) are compensated at an annual rate of at least $8,000.