Los Angeles, California – The ongoing fight to protect misclassified workers in California reached a new milestone as the state secured a $10 million judgment against a home care company accused of unlawfully labeling employees as independent contractors. The ruling marks a major victory for in-home care workers who were denied proper wages, benefits, and protections under state labor laws.
$10 Million Judgment Against Care Specialist HCS Inc.
The Los Angeles County Superior Court issued a $10 million judgment and permanent injunction against Care Specialist HCS Inc., formerly known as TLC Home Care Services, and its former and current owner-operators. The case, filed by the California Department of Justice in 2023, alleged that the company had misclassified in-home care workers since 2016.
Despite being informed of the violations, the company continued the practice even after being acquired in 2022. The court’s decision includes over $10 million in restitution and penalties and permanently bars the company from future misclassification.
Attorney General Rob Bonta emphasized that worker misclassification amounts to wage theft. It deprives employees of fair pay, essential benefits, and the job security they deserve.
When Misclassification Becomes Wage Theft: What the Law Says
Under California labor laws, employees are entitled to specific rights and benefits that independent contractors do not receive. Misclassifying workers undermines those protections and violates the Unfair Competition Law.
Key legal implications include:
- Wage Theft: Denying overtime pay, meal breaks, and paid leave to workers misclassified as independent contractors.
- California Assembly Bill 5: Establishes the “ABC test” to determine a worker’s correct employment status.
- Employer Liability: Companies found guilty may face civil penalties, back pay, and restitution for unpaid wages and benefits.
- Tax and Benefit Violations: Misclassification also leads to loss of state tax revenue and unpaid employment contributions.
Recover Lost Wages and Defend Your Worker Rights
If you believe you’ve been treated as an independent contractor when you should be an employee, you may be entitled to compensation. Our Los Angeles employment lawyers can help you understand your rights, recover lost wages, and hold employers accountable for labor law violations.
Contact us today for a free consultation. We’re here to protect your rights and ensure fair treatment for all misclassified workers in California.
