Labor Commissioner's Office Wins $5.5 Million Settlement for Exploited Caregivers
Past caregivers in Adat Shalom receive the $5.5 million check to compensate their hard work
The California Labor Commissioner's Office achieved a $5.5 million settlement in a wage theft lawsuit against Adat Shalom Board and Care Inc. This victory was a significant moment for 148 caregivers who fought for justice against exploitation and unfair treatment.
The caregivers were subjected to working tirelessly, caring for elderly residents 24 hours a day, and six days a week. Despite their efforts, they only received compensation for just six hours each day. To top it off, the caregivers were earning less than three dollars per hour, far below the legal minimum wage.
The Pilipino Workers Center (PWC), a nonprofit organization devoted to promoting the rights of low-wage workers, particularly those in residential care, is involved in this case, helping the caregivers get the compensation they deserve, The PWC reported labor law violations related to the caregivers' wages and working conditions in June 2017, prompting the Labor Commissioner's Office to launch an investigation.
In 2018, the Labor Commissioner's Office issued citations against Adat Shalom Board and Care Inc. Angelica Reingold, the owner of the care facility, contested the citations, resulting in a prolonged legal process. These appeals ultimately culminated in 2021 with the citations being upheld, setting the stage for a lawsuit.\
Subsequently, the Labor Commissioner's Office initiated legal proceedings to correct the improper transfer of assets. This legal action eventually led to the $5.5 million settlement, providing much-needed relief to the underpaid caregivers.
Pilipino Workers Center (PWC) held a press conference at the Filipino Workers Center's Larry Itliong Village on December 6, 2023, to announce and celebrate the settlement of the case.
The conference featured speakers, including Lilia Garcia-Brower, the California Labor Commissioner, who emphasized the importance of enforcing labor laws to protect workers. Sinagtala Limbo, a former Adat Shalom care provider, shared her experiences and called for a worker's solidarity fund. Atty. Yvonne Medrano, Staff Attorney at Bet Tzedek Legal Services, discussed the broader implications of justice for Adat Shalom workers, while Kimberly Alvarenga, Director of the California Domestic Workers Coalition, emphasized the strength in unity.
The press conference ended with the awarding of the $5.5 million check and a post-conference press interview.
The $5.5 million wage theft settlement is a significant victory for caregivers who were both underpaid and overworked. It also sends a strong message that labor exploitation will not be tolerated in California. Moreover, it holds special significance for the Filipino community, reaffirming the importance of fair treatment and just compensation for all caregivers.
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