Mother and son duo cited $4.4 million for misclassifying caregivers
Los Angeles—The California Labor Commissioner’s Office (LCO) cited Hart Placement Agency Inc., a Canoga Park based company, and its principals, Annie Ghaw and Hartmann Ghaw, $4,423,450 for misclassifying 144 caregivers as independent contractors while working in private homes throughout Los Angeles County.
An investigation by LCO’s Bureau of Field Enforcement (BOFE) found that Hart Placement, operated by a mother and son team, misclassified caregivers and denied them basic legal protections, including accurate wage statements and paid sick leave. Of the total $4,423,450 cited, $4,266,450 is owed directly to the affected workers.
What California Labor Commissioner Lilia García-Brower said: “Caregivers perform difficult, essential work in people’s homes—bathing, dressing, cleaning and caring for people who cannot care for themselves. Many are already underpaid for this demanding work and misclassifying them compounds the injustice by denying workers the basic protections and rights they deserve.”
Workers in low-wage industries are particularly vulnerable to misclassification, which disproportionately harms those who already earn low wages and have limited bargaining power. Employers may use misclassification to skirt the law and gain an unfair advantage over employers who follow the law.
From October 2022 through December 2024, Hart Placement required caregivers to obtain business licenses and file fictitious business name statements as part of a scheme to misclassify them as independent contractors. LCO’s investigation also found that Hart Placement maintained control over caregivers’ schedules, duties and compensation, as well as required caregivers to sign independent contractor agreements without providing copies.
Investigators further found that caregivers were instructed to falsify timesheets or sign documents to conceal shifts exceeding 12 or 24 hours and did not receive paystubs or paid sick leave required under California labor law.
LCO determined that Hart Placement willfully misclassified caregivers in violation of California labor law and committed additional violations including failure to provide accurate wage statements and required paid sick leave notices.
What an affected caregiver said: “At the time I was hired, I had to sign documents stating that I was an independent contractor. The agency directed me to set up my own business by getting a business permit, registering a fictitious business name, and opening a bank account under that name just to be able to work for them.”
LCO initiated its investigation in December 2024 following a referral from Pilipino Workers Center of Southern California, a community-based organization that helped identify witnesses who cooperated with the investigation.
On October 1, 2025, LCO issued citations and Notices to Discontinue Labor Law Violations against Hart Placement Agency Inc. and its owners.
Employers cited by LCO have the right to appeal citations within 15 business days after service. The defendants have appealed, and a hearing date is pending.
About the Bureau of Field Enforcement
BOFE is a unit within LCO that enforces key labor laws through on-site investigations and strategic enforcement actions.
BOFE targets industries with high rates of labor violations, conducting workplace inspections to uncover wage theft, child labor violations, failure to carry workers’ compensation insurance, and other unlawful employment practices. Its work helps ensure fair treatment for workers while promoting a level playing field for responsible employers.
BOFE has issued over 2,400 citations against employers for labor law violations between January 2022 and April 2026, recovering over $58.3 million in stolen wages, damages, and interest on behalf of workers.
This work includes multiple announcements highlighting a range of violations, including a settlement of $431,601 to return unpaid wages and damages to 86 carpenters, $1.1 Million in penalties issued to a Buena Park restaurant over wage and sick leave violations, and a citation of over $2 million for another case of misclassifying workers.
Last year BOFE issued more than 4,800 notices to discontinue labor law violations and corrected violations that collectively impacted over 57,000 California workers.
To meet growing enforcement demands and expand outreach, BOFE has increased staffing across key regions, strengthening its presence in communities most impacted by labor violations.
Workers who have questions about labor laws enforced by 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, with services available in Spanish and other languages. LCO will never inquire about an individual’s immigration status.
LCO is a division of the Department of Industrial Relations.
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Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov
Media Contact: Communications@dir.ca.gov, (510) 286-1161