California Attorney General Rob Bonta announced that the Los Angeles County Superior Court has issued a $10 million judgment and permanent injunction against Care Specialist HCS Inc., previously known as TLC Home Care Services, and its former and current owner-operators. The court found that the company misclassified in-home care workers as independent contractors rather than employees, violating California labor laws and the Unfair Competition Law.
The judgment follows a summary adjudication motion granted to the Attorney General’s office. It includes more than $10 million in restitution and civil penalties, along with a permanent order preventing Care Specialist HCS Inc. and its owners from misclassifying employees in the future.
“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 Attorney General Bonta. “This is a clear message to employers in California: Misclassification is wage theft. If you cheat workers by misclassifying them, you will be held accountable.”
The California Department of Justice filed suit against Care Specialist HCS Inc. in 2023. The company has operated in California since 2016, employing hundreds of care workers during that time. Despite legal requirements for employee classification—and despite telling clients otherwise—the company continued to misclassify workers even after being acquired by new owners in 2022 who had been informed about the state’s position on worker classification. This practice not only affected workers but also led to significant losses in tax revenue for California.
Attorney General Bonta stated his commitment to protecting worker rights, workplace safety, and maintaining a fair labor market within the state. His office enforces laws intended to safeguard both employees and legitimate businesses across various industries including nursing, construction, and janitorial services.
A copy of the judgment and permanent injunction can be found here.
