Under newly enacted Labor Code section 181, the California Labor Commissioner (LC) has cited Amity In-Home Care (Amity)  $2.3 million for misclassifying caregivers as independent contractors.

On investigation, the LC also discovered Amity had no workers compensation insurance and issued a stop order and $100/worker penalty assessment.  The stop order closed the company until it acquired the coverage, but it had to continue paying the workers.

Citations against Amity include: willful worker misclassification penalties ($550,000); unpaid minimum wages ($422,033), plus liquidated damages ($422,033); unpaid overtime ($424,809); rest and meal premiums ($165,162); no workers’ compensation insurance ($81,673); pay stub penalties ($27,400); waiting time penalties for late final pay ($108,094); and other civil penalties ($18,950).

Labor Commissioner Lilia García-Brower commented: “Misclassifying workers is not a simple paperwork error. It is a deliberate violation of the law that denies employees earned wages, protections, and benefits they are legally owed and entitled to. My office is committed to holding employers accountable and ensuring all workers, especially caregivers, receive the pay they deserve.”

Take-Aways:

An employer can be tempted to hire people as independent contractors to save money or at the worker’s request.  However, qualification as an independent contractor is a matter of law, not choice.  Managers should consult a qualified attorney before they classify an incoming worker as an independent contractor.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Department of Labor $5.6 Million Judgment for Drivers Miscast as Independent Contractors (February 3, 2023)
• $1.8 Million Citation for Independent Contractor Misclassification (January 20, 2023)
• Construction Company Sued for $6,300,338 – Alleged Misclassification of Independent Contractors (August 18, 2017)

Helena Kobrin
March 21, 2025