CA Targets Worker Misclassification: $2.3M Penalty Issued

Los Angeles, California—The California Labor Commissioner’s Office (LCO) has levied a $2.3 million citation against Amity In-Home Care Services for improperly classifying caregivers as independent contractors. This action marks the first enforcement under recent legislative changes, allowing for directly recovering damages by affected workers.

Officials determined that the company misclassified workers, depriving employees of rightful earnings and benefits. Lilia García-Brower, the California Labor Commissioner, emphasized that such misclassification represents a deliberate violation of labor statutes, denying workers essential protections.

An investigation, prompted by a referral from Bet Tzedek Legal Services, revealed additional infractions. These included failure to provide overtime pay, absence of workers’ compensation insurance, and inadequate wage statements. The financial penalties imposed address unpaid minimum and overtime wages missed meal and rest periods, and other related violations.

The LCO’s findings demonstrate the state’s commitment to combatting wage theft. This occurs when employers fail to compensate employees as required by state law. 

Worker misclassification, a form of wage theft, denies employees fundamental rights. California labor laws protect workers who report such violations and provide avenues for recourse through the LCO.

If you’re facing any employment-related legal issues, contact us today for expert guidance.

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