Right you are FutureRanger in fact the exact wording from the U.S. Code is as follows.
"When approved for wear, the full-color U.S. flag cloth replica is sewn 1/2 inch below the right shoulder seam of the temperate, hot-weather, enhanced hot-weather, and desert BDU; the BDU field jacket; and the cold-weather uniform. The flag is worn on the right shoulder, because, in the military, the "place of honor" is to a military member's right.
The full-color U.S. flag cloth replica is worn so that the star field faces forward, or to the flag’s own right. When worn in this manner, the flag is facing to the observer’s right, and gives the effect of the flag flying in the breeze as the wearer moves forward."