A recent investigation by the U.S. Department of Labor has uncovered a rise in wage theft among care industry employers in California. The department's efforts have led to the recovery of $735,762 in back wages and damages from five employers who violated federal pay regulations, affecting 173 workers.
Cesar Avila, District Director of the Wage and Hour Division in Sacramento, emphasized the department's commitment to enforcing labor laws. "The U.S. Department of Labor will continue to enforce the law and hold unscrupulous employers in the care industry fully accountable for their illegal employment practices," Avila stated. He encouraged workers facing wage denial to report violations and urged compliant employers to speak out against unfair practices.
Among the cases investigated, Community Anchor Services Inc., based in Carmichael, was found guilty of denying overtime pay for hours exceeding 40 per week. This resulted in a recovery of $252,578 for 103 employees and penalties amounting to $32,343.
Nankil Enterprises Inc., operating five adult residential care facilities in Bakersfield, also failed to pay overtime wages. The division recovered $245,285 for 39 workers and imposed $19,159 in civil money penalties.
Opoku Residential Care Inc., managing four facilities in Fresno, did not comply with overtime wage requirements either. This case led to a recovery of $113,507 for 20 employees along with penalties totaling $9,163.
C. Seisa House in Auburn was similarly found at fault for not paying required overtime wages. The investigation recovered $63,974 for two workers with an additional penalty of $686.
Lastly, Nora Serrano's operations under Casa de Amor across three locations failed to combine hours worked at different sites leading to violations. This resulted in a recovery of $60,418 for nine employees with penalties assessed at $6,174.
These findings are part of broader efforts by the Wage and Hour Division aimed at accountability and prevention within the healthcare sector nationwide. In fiscal year 2024 alone, over 2,300 investigations were conducted resulting in more than $37.8 million recovered for nearly 30,000 workers alongside penalties exceeding $2.8 million.
For those seeking assistance or suspecting owed wages can contact the division through its helpline or utilize available resources such as compliance tools and mobile applications designed to ensure accurate tracking of work hours and pay.
