California Labor Commissioner’s Office Reaches $5.5 Million Wage Theft Lawsuit Settlement to Compensate 148 Caregivers
First Payment of $2 Million Distributed to Employees of Adat Shalom Board and Care
Los Angeles—The Labor Commissioner’s Office (LCO) has reached a $5.5 million settlement against Adat Shalom Board and Care Inc. to compensate 148 workers who worked at the employer’s six adult care facilities in Los Angeles. The employees cared for elderly residents 24 hours a day, six days a week, but were only paid for six hours each day. The first payment of $2 million under the settlement agreement has been distributed to the workers.
Workers employed at Adat Shalom from July 2014 to July 2017 should contact the LCO at 833-LCO-INFO (833-526-4636), as they may be entitled to owed wages and damages under this settlement agreement.
“For years, the employer paid these caregivers less than three dollars an hour and attempted to avoid liability by hiding assets. Our team took the employer to court to stop the illegal transfer of assets,” said California Labor Commissioner Lilia García-Brower. “My office is committed to collecting owed wages from employers engaged in wage theft and stopping these illegal practices. This settlement also secures an agreement by the employer to no longer operate a residential care business in California.”
The Labor Commissioner’s Office opened its investigation in June 2017 after receiving a report of labor law violations from the Pilipino Workers Center (PWC), and issued citations in 2018. The PWC is a non-profit, community-based organization that organizes and advocates low-wage workers, including residential care workers.
Adat Shalom Board & Care, Inc. and its owner/operator Angelica Reingold appealed the citations, which were upheld in 2021. The Labor Commissioner’s Office later filed a lawsuit to reverse the improper transfer of assets, which resulted in the $5.5 million settlement.
The Department of Industrial Relations’ 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 Labor Commissioner’s Office 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. Californians can follow the Labor Commissioner on Facebook and Twitter.
Media Contact: Communications@dir.ca.gov, (510) 286-1161
Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov