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Department of Labor recovers unpaid wages from California care providers

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Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website

More than 700,000 individuals work in California to provide essential home health or personal care services. Despite their dedication, many employers in the industry fail to pay these workers their rightful wages. The U.S. Department of Labor's Wage and Hour Division has conducted over 2,300 investigations nationwide, recovering more than $37.8 million in back wages for nearly 30,000 workers during fiscal year 2024.

Recently, the division announced the recovery of $863,860 in back wages and damages for 58 workers from four residential care providers in California. These employers had violated minimum wage and overtime laws under the Fair Labor Standards Act.

Cesar Avila, Wage and Hour Division District Director in Sacramento, stated: “Make no mistake, the Department of Labor is committed to stopping the exploitation of workers by residential care industry employers and holding them accountable for their unscrupulous employment practices.”

The investigations revealed that Brisbane Guest Home Inc., a provider for persons with developmental disabilities in Stockton, failed to pay required overtime. This resulted in $483,185 being recovered for 11 workers along with $7,546 in penalties.

In another case involving six facilities owned by an individual in Sacramento and Elk Grove regions—Laguna Village RCFE among others—44 employees were not paid owed overtime wages. The division recovered $306,066 and assessed $18,326 in penalties.

Jackson’s Facilities Inc., based in Sacramento as well, was found guilty of making illegal deductions and denying overtime pay to one employee. Consequently, $46,623 was recovered.

Timeless Homecare Inc., operating as Amada Senior Care in Davis, did not fully compensate two employees for overtime hours worked beyond 40 per week. The division secured $27,986 along with $2,058 in penalties.

These efforts are part of a broader initiative aimed at enforcing compliance while educating stakeholders on lawful employment practices. Employers can access various compliance assistance resources provided by the division.

For those who suspect they may be owed back wages or need confidential compliance assistance—available across more than 200 languages—the agency offers a toll-free helpline at 866-4US-WAGE (487-9243). Additionally available is a Timesheet App for accurate tracking of hours and pay.

The news release is also accessible in Tagalog.

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