The California Labor Commissioner’s Office cited a homecare provider $2.3 million for misclassifying caregivers in a test of a new law the went into effect in January.
The LCO issued the fines to Amity In-Home Care Services Inc. for misclassifying caregivers as independent contractors.
The office said this is the first enforcement action under Assembly Bill 594, which enables the state to recover damages on behalf of affected workers.
The investigation, initiated after a referral from Bet Tzedek Legal Services in 2023, reportedly showed the company failed to pay overtime, did not provide workers’ compensation insurance and issued inadequate wage statements.
The LCO found that Amity In-Home Care violated labor laws, including:
- $424,809 in unpaid overtime wages
- $165,162 in meal and rest period premiums
- $27,400 in wage statement penalties
- $108,094 in waiting time penalties for delayed final wages
- $550,000 in penalties for willful worker misclassification
- $81,673 in penalties for no workers’ compensation insurance for the misclassified employees
- $422,033 in liquidated damages
- $18,950 for other civil penalties
Topics California
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