California Labor Commissioner’s Office Reaches $5.5 Million Wage Settlement to Pay 148 Caregivers

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The Labor Commissioner’s Office (LCO) reached a $5.5 million settlement against Adat Shalom Board and Care Inc. to pay 148 workers who work at the employer’s six adult care facilities in Los Angeles. Employees care for elderly residents 24 hours a day, six days a week, but are only paid for six hours per day. The first payment of $2 million under the settlement agreement has been distributed to the workers.

Workers who worked for Adat Shalom from July 2014 to July 2017 should contact the LCO at 833-LCO-INFO (833-526-4636), as they may be entitled to back wages and damages under this settlement agreement.

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“For years, the employer paid these caregivers less than three dollars an hour and tried to avoid liability by hiding assets. Our team took the employer to court to stop the illegal transfer of assets,” said California Labor Commissioner Lilia García-Brower. “My office is committed to collecting back wages from employers who steal wages and stopping these illegal practices. This settlement also secures an agreement by the employer to no longer operate a business in home care in California.

The Labor Commissioner’s Office opened its investigation in June 2017 after receiving a report of labor law violations from the Pilipino Workers Center (PWC) and issued citations in 2018. PWC is a non-profit, community-based organization that organizes and advocates for low-wage workers, including domestic workers.

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Adat Shalom Board & Care, Inc. and its owner/operator, Angelica Reingold, appealed the citations, which were upheld in 2021. The Labor Commissioner’s Office later filed a suit to reverse the improper transfer of assets, resulting in a $5.5 million settlement.

The Department of Industrial Relations Division of Labor Standards Enforcement (California Labor Commissioner’s Office) combats wage theft and unfair competition by investigating allegations of illegal and unfair business practices.

In 2020, the Office of the Labor Commissioner launched an interdisciplinary outreach campaign, “Reaching Every Californian.” The campaign increases basic protections and builds channels to the affected population so that workers and employers understand the legal protections and obligations, as well as the Labor Commissioner’s enforcement procedures.

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The California Department of Industrial Relations, founded in 1927, protects and promotes the health, safety, and economic welfare of more than 18 million employees and helps their employers comply with state labor laws. DIR is housed within the Labor and Workforce Development Agency