California residential care company to pay employees $1.1M in back pay, damages

Investigators found employer violated overtime, minimum wage, recordkeeping laws

Posted October 13, 2016

On October 10, the California Labor Commissioner’s Office announced that a San Diego residential care company will pay 15 caregivers more than $1.1 million in back wages and liquidated damages. The company was found to have violated minimum wage, overtime, and recordkeeping provisions of the California Labor Code.

The Labor Commissioner’s Office launched its investigation in July 2015 after receiving an anonymous tip. Investigators found the employer paid the 15 caregivers less than $4 an hour for 24-hour shifts, five days a week. The workers, most of them women who recently emigrated from the Philippines, were obliged to sleep in the rooms with their patients and pay their employer $180 each week for food and lodging.

The employer will pay the 15 workers $331,843 in lost minimum wages, $386,602 in overtime wages, and $393,158 in liquidated damages. When workers are paid less than minimum wage, they are entitled to liquidated damages which equal the amount of underpaid wages plus interest. The caregivers’ back wages owed range from $4,326 to $45,401 depending on the amount of time worked.

Wage & Hour Compliance AssessmentJ. J. Keller's Wage & Hour Compliance Assessment can help you avoid costly fines and litigation related to wage and hour violations.


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