California Attorney General Rob Bonta Thursday sued a Los Angeles home health care company and its prior operators for allegedly misclassifying hundreds of workers as independent contractors instead of employees, resulting in the denial of workplace protections.
The lawsuit filed in Los Angeles Superior Court alleges Care Specialist HCS Inc., formerly doing business as TLC Home Care Services, and prior operators Benjamin Cabrera and Geoffrey Jimenez were in violation of California’s labor laws and Unfair Competition Law.
The complaint alleges that since at least 2016, the defendants’ misclassification of hundreds of workers resulted in extensive wage theft and caused workers to be denied basic workplace protections such as a minimum wage, overtime pay, meal breaks and rest periods, paid sick leave, and workers’ compensation benefits, among other benefits.
For example, some caregivers were paid as little as $120 a day for working 24-hour shifts, which yielded a $5 hourly pay rate with no overtime pay, according to the lawsuit.
Cabrera and Jimenez could not immediately be reached for comment.
The lawsuit also alleges the company misrepresented workers’ employment status to its clients, falsely telling clients that it treated its care workers as employees when it did not. The complaint further alleges that the company included non-compete clauses in its client contracts, which are void in California.
“Misclassifying workers is illegal and harms both employees and the state,” Bonta said in a statement. “In-home care workers provide essential services to our most vulnerable populations, and they deserve to be treated fairly under the law. My office will continue to fight against worker misclassification and protect the rights of all Californians.”
The case was brought to the attention of the AG’s office by the Pilipino Workers Center in Los Angeles. Care Specialist HCS has been operating in California since at least 2016 and has employed hundreds of care workers during this time, many of whom are Filipino immigrants, Bonta said.
Despite clear labor laws requiring that these workers be classified as employees, and the company’s own representations to its clients that it did so, the company has misclassified care workers for years, and has continued to do so even after being acquired by new owners in September 2022, the AG alleged.
The misclassification has not only harmed workers, but has also resulted in significant financial implications for the state, leading to the loss of considerable tax revenue, according to Bonta.
The lawsuit seeks injunctive relief, restitution and penalties.