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    Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—Employer to pay $10M for misclassifying in-home care workers as independent contractors, (Oct 3, 2025)

    Organizations Mentioned:California Department of Justice | Care Specialist HCS Inc. | TLC Home Care Services

    By WK Editorial Staff

    According to California Attorney General Rob Bonta, the employer also subjected workers to illegal no-poach agreements.

    Care Specialist HCS Inc., formerly TLC Home Care Services, and its owner-operators were ordered to pay $10 million in restitution a ...

    By WK Editorial Staff

    According to California Attorney General Rob Bonta, the employer also subjected workers to illegal no-poach agreements.

    Care Specialist HCS Inc., formerly TLC Home Care Services, and its owner-operators were ordered to pay $10 million in restitution and penalties following a California Attorney General lawsuit over worker misclassification, the AG’s office has announced.

    Final judgment by court. The Los Angeles County Superior Court found the company violated California labor laws and the Unfair Competition Law by misclassifying in-home care workers as independent contractors rather than employees, denying them fair wages, benefits, and legal protections. It entered a final judgment and permanent injunction on Thursday.

    The permanent injunction prohibits future misclassification.

    Attorney General Rob Bonta stated, “Misclassification is wage theft. If you cheat workers you will be held accountable.”

    New owners knowingly continued misclassification. The California Department of Justice filed suit in 2023 against Care Specialist HCS Inc., which has been operating in the state since 2016 and has employed hundreds of care workers in that time. Regardless of clear labor laws requiring that these workers be classified as employees and the company’s own false representations to its clients that it did so, the company misclassified care workers for years, the AG explained. The employer continued to do so even after being acquired in 2022 by new owners who had been made aware of the Attorney General’s position that these workers were being misclassified.

    No-poach agreements. “Today’s judgment brings long-overdue justice to hundreds of in-home care workers who were denied fair wages, benefits, and basic labor protections and who were also subjected to illegal no-poach agreements which restricted their mobility in the labor market,” said Bonta.

    Companies: Care Specialist HCS Inc.; TLC Home Care Services

    News: LitigationNewsTrends CaliforniaNews RemediesDamages EmployeeStatus StateLawClaims WageHour

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