WAGE THEFT: Owner of Six Care Homes Busted for Paying Caregivers Less than $3 per Hour

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Additionally, the Labor Commissioner encouraged caregivers in other residential care facilities to speak up and report wage theft.

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In June, the Pilipino Workers Center (PWC) reported complaints of wage theft against Adat Shalom to the Labor Commissioner’s Office. The regulator started an investigation against the company.

Based on its investigation, the live-in caregivers of Adat Shalom at its six care homes in West Hills were:

  • Paid less than the minimum wage for each hour they worked
  • Not paid overtime for working 24-hour shifts, six days a week
  • Not relieved from their duties to take meal or rest breaks
  • Provided pay stubs that withheld key information such as hourly rate of pay and total number of hours worked

The labor violations occurred from July 2014 to July 2017. During those periods, the minimum wage in California ranged from $9 to $10.50 per hour.

Adat Shalom to pay $7 million in back wages and penalties

The Labor Commissioner’s Office ordered the owner of Adat Shalom to pay $7,137,036 in underpaid wages and penalties.