{"id":10116,"date":"2026-05-14T12:37:49","date_gmt":"2026-05-14T16:37:49","guid":{"rendered":"https:\/\/www.connmaciel.com\/employer-defense-report\/?p=10116"},"modified":"2026-05-14T12:53:31","modified_gmt":"2026-05-14T16:53:31","slug":"department-of-industrial-relations-charges-mother-son-duo-4-4-million-in-citations","status":"publish","type":"post","link":"https:\/\/www.connmaciel.com\/employer-defense-report\/department-of-industrial-relations-charges-mother-son-duo-4-4-million-in-citations\/","title":{"rendered":"California DIR Issues $4.4 Million in Citations for Caregiver Misclassification"},"content":{"rendered":"\n

Just last month, the Department of Industrial Relations (DIR) fined a mother-son duo $4.4 million – $4,423,450 specifically \u2013 for violations of the Labor Code on behalf of 144 workers.\u00a0 This business operated as a staffing company providing caregivers in private homes throughout Los Angeles.\u00a0 The business decided to treat these caregivers as independent contractors, resulting in misclassification and Labor Code violations.\u00a0 Here is a link to the news release<\/strong><\/a>: \u201cMother and son duo cited $4.4 million for misclassifying caregivers<\/em>\u201d | California Department of Industrial Relations.<\/p>\n\n\n\n

This duo is not alone in home health care agencies being tagged by the state of California.\u00a0 For example, in 2024, the DIR cited a group of businesses for wage violations, including minimum wage, overtime, and other violations, finding back wages and damages in the amount of $860,000.\u00a0<\/p>\n\n\n\n

Both the Department of Labor (DOL) and the DIR have stated an intent to protect workers from what has been described as \u201cexploitation\u201d by residential care industry employers and holding them accountable for \u201cunscrupulous employment practices.\u201d\u00a0\u00a0 The agencies focused on the fact that the workers tend to be both female and low-income workers in the state of California, and need protection.\u00a0\u00a0<\/p>\n\n\n\n

Through my representation of home healthcare agencies, I can easily say two things.\u00a0 One, the need for caregivers, both in California and nationally, is growing exponentially.\u00a0 California, specifically, has one of the fastest-growing senior populations in the United States.\u00a0 Two, the businesses I have the privilege to represent care deeply for both the population served and the caregivers who are performing this difficult, essential work.\u00a0\u00a0<\/p>\n\n\n\n

How Home Health Agencies Can Protect Themselves<\/strong><\/h2>\n\n\n\n

There is hope.\u00a0 One of the most effective approaches we regularly use when advising the businesses we work with at CMC is ensuring proper documentation, accurate worker classification, and routine auditing of personnel and payroll records.\u00a0 For caregivers and home health agencies, California law provides several protections that assist the home health care business, the client, and the employee.\u00a0 For example, these important workers have been provided with a separate wage order, Wage Order 15, which, if properly implemented, addresses minimum wage, overtime, and other work conditions specifically for domestic and household workers.\u00a0 This Wage Order also acknowledges the important caregiving role that the employee provides, which is recognizing the need for on-duty meals and rest breaks.\u00a0 Additionally, Wage Order 15 provides for different overtime calculations.\u00a0 \u00a0<\/p>\n\n\n\n

To clarify, these types of claims are not limited to investigations by the DIR or DOL.\u00a0 Plaintiff\u2019s lawyers are seeking class action and PAGA claims through this growing industry as well.\u00a0 We have been able to thwart these through proper arbitration agreements, in addition to the required onboarding documentation.\u00a0 Proper implementation of these documents, providing the necessary training, and proper management is vital to avoid these hefty citations, individual, class or PAGA claims.\u00a0 Not only does this set the expectations of all involved, but it also provides a necessary defense if the DIR opens an investigation into your home health agency.\u00a0<\/p>\n\n\n\n

We have been successful in defending our clients against these claims and investigations after partnering with these businesses to establish a viable framework.\u00a0 This is especially important now, given the growth in the region and the increase in both worker claims and DIR investigations.\u00a0 Now is the time, rather than after the investigation has begun.\u00a0 \u00a0<\/p>\n\n\n\n

If you have any questions, please contact Kim Cole at kcole@connmaciel.com<\/a> and Megan Shaked at mshaked@connmaciel.com<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"

Just last month, California\u2019s Department of Industrial Relations issued $4.4 million in citations to a Los Angeles\u2013based mother\u2011son operation after finding widespread misclassification of 144 caregivers as independent contractors. This enforcement action reflects a broader trend: both the DIR and the U.S. Department of Labor have intensified scrutiny of home health agencies, emphasizing protections for low\u2011income, predominantly female caregivers and targeting what they describe as exploitative employment practices. As investigations and worker claims continue to rise across the state, it is increasingly critical for home health providers to ensure accurate worker classification, maintain thorough documentation, and implement compliant onboarding and payroll practices.<\/p>\n","protected":false},"author":31,"featured_media":10118,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[11],"tags":[909,842,825,908],"class_list":["post-10116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-local-trends","tag-agency-investigations-audits","tag-california-compliance","tag-employee-classification-exempt-vs-non-exempt","tag-pay-practices"],"acf":[],"yoast_head":"\nCalifornia DIR Issues $4.4 Million in Citations for Caregiver Misclassification - Employer Defense Report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.connmaciel.com\/employer-defense-report\/department-of-industrial-relations-charges-mother-son-duo-4-4-million-in-citations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California DIR Issues $4.4 Million in Citations for Caregiver Misclassification - Employer Defense Report\" \/>\n<meta property=\"og:description\" content=\"Just last month, California\u2019s Department of Industrial Relations issued $4.4 million in citations to a Los Angeles\u2013based mother\u2011son operation after finding widespread misclassification of 144 caregivers as independent contractors. 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