Amity In-Home Care Services cited $2.3 million for improperly misclassifying caregivers as independent contractors
Los Angeles –The California Labor Commissioner’s Office (LCO) has cited Amity In-Home Care Services more than $2.3 million for misclassifying caregivers as independent contractors.
The LCO, which operates under the Department of Industrial Relations (DIR), issued the citations under Labor Code Section 181 as established by Assembly Bill 594, making this the first enforcement action under this new law. Previously, the civil penalties collected from employers for these violations were solely payable to the state. Now, the state can collect these amounts as damages payable to affected misclassified workers.
What California Labor Commissioner Lilia García-Brower said: “Misclassifying workers is not a simple paperwork error. It is a deliberate violation of the law that denies employees earned wages, protections, and benefits they are legally owed and entitled to. My office is committed to holding employers accountable and ensuring all workers, especially caregivers, receive the pay they deserve.”
The LCO also uncovered additional serious violations, including failing to properly pay workers overtime wages, not providing required workers’ compensation insurance, and neglecting to give misclassified workers proper wage statements.
The violations came to light after the LCO received a referral of suspected worker misclassification from Bet Tzedek Legal Services in April 2023. In response, an inspection was conducted at Amity In-Home Care Services, which resulted in an immediate Stop Order Penalty Assessment due to the company’s failure to provide workers’ compensation insurance for its employees.
Financial Penalties and Legal Violations
The LCO found that Amity In-Home Care Services, Inc. violated multiple labor laws, resulting in:
- $422,033 in unpaid minimum wages*
- $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
The total amount cited was $2,327,257, which includes interest and additional penalties, with $2,203,384 payable to the misclassified workers.
Background on Wage Theft and Worker Misclassification
Wage theft occurs when employers fail to pay workers for all hours worked, including overtime and required breaks, as mandated by California labor laws. A common form of wage theft is misclassification, in which employees are wrongly designated as independent contractors. This practice strips workers of essential protections including workers’ compensation, family leave, and unemployment benefits.
Under California law, misclassification is illegal, and workers are protected from employer retaliation when reporting violations. Those who believe they have been misclassified or underpaid can file a wage claim with the Labor Commissioner’s Office.
About the Labor Commissioner’s Office
DIR’s Division of Labor Standards Enforcement (California Labor Commissioner’s Office) combats wage theft and unfair competition by investigating allegations of illegal and unfair business practices.
The LCO in 2020 launched an interdisciplinary outreach campaign, “Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations, so workers and employers understand legal protections and obligations, as well as the Labor Commissioner’s enforcement procedures.
Workers who have questions about labor laws enforced by the LCO can call 1-833-LCO-INFO (833-526-4636) between the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday.
Californians can follow the Labor Commissioner on Facebook and Twitter.
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
Media Contact: Communications@dir.ca.gov, (510) 286-1161