Department of Labor recovers $863K in wages, damages from 4 California residential care providers that shortchanged minimum, overtime wages

SACRAMENTO, CA – More than 700,000 people work to provide essential home health or personal care to older adults, people with disabilities or special needs in California and, despite their dedication to others’ needs, federal investigators find too many industry employers deceptively denying these hard-working people their full and rightful wages under the law. 

The problem extends to the broader healthcare industry where more than 2,300 investigations by the U.S. Department of Labor’s Wage and Hour Division recovered more than $37.8 million in back wages for nearly 30,000 workers nationwide in fiscal year 2024. The division also assessed employers with more than $2.8 million in penalties for violations of federal labor regulations.

Just weeks into the new fiscal year 2025, the division is announcing the combined recovery of $863,860 in back wages and damages for 58 workers employed by four residential care providers in California that denied them minimum wage, overtime or both, and violated the Fair Labor Standards Act.

“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,” said Wage and Hour Division District Director Cesar Avila in Sacramento. “Our investigations find many of care workers harmed are women and low-wage earners, who can least afford to be denied their full wages.”

Specifically, the recoveries were made after investigations of the following employers:

• Brisbane Guest Home Inc., a residential care provider for persons with developmental disabilities with three locations in Stockton, failed to pay workers required overtime pay for hours over 40 in a workweek. The division recovered $483,185 in wages for 11 workers and assessed $7,546 in penalties.
• The owner of six residential care facilities for the elderly in the Sacramento region did not pay overtime wages owed to 44 employees at Laguna Village RCFE, Laguna Springs RCFE and Signature Living on Lavelli Way in Elk Grove; Havenwood RCFE and Capital Senior Care in Sacramento; and Signature Living RCFE in Rancho Cordova. In addition to recovering $306,066 in back wages and damages for the workers, the division assessed $18,326 in penalties.
• Jackson’s Facilities Inc., an adult home care provider also in Sacramento, failed to pay one employee for all hours worked, made illegal deductions not specified in the contract and denied overtime pay for hours over 40 in a workweek. The division recovered $46,623 in back wages in this case.
• Timeless Homecare Inc., a home healthcare provider for individuals with disabilities that operates as Amada Senior Care in Davis, paid some but not all overtime due to two employees for hours over 40 in a workweek. The division recovered $27,986 in wages and damages and assessed $2,058 in penalties.

These investigations are part of a wider effort by the division to hold violators accountable and to provide outreach and education to employers, workers and other stakeholders to raise awareness and prevent violations. To assist employers, the division offers many compliance assistance resources to ensure lawful employment practices.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file a complaint. For confidential compliance assistance, workers and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from. The division can speak with callers in more than 200 languages.

Download the division’s Timesheet App for iOS and Android devices – available in English and Spanish – to ensure hours and pay are accurate.

This news release is also available in Tagalog.