California AG Wins $10M Judgment in Workforce Misclassification Case

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  • California AG Rob Bonta secured a $10 million judgment and permanent injunction against Care Specialist HCS Inc. and its former and current owner-operators for illegally misclassifying hundreds of in-home care workers as independent contractors.
  • AG Bonta filed the lawsuit against Care Specialist HCS Inc. in Los Angeles County Superior Court in 2023 alleging that such misclassification violated California’s labor laws and Unfair Competition Law by denying workers overtime pay, benefits, and basic labor protections, and also by imposing illegal no-poach agreements. AG Bonta also argued that this conduct harmed workers and caused the state to lose tax revenue.
  • Under the judgment and permanent injunction, Care Specialist HCS Inc. must pay over $10 million in restitution and civil penalties and is barred from improperly classifying employees as independent contractors in the future.
  • We have previously covered other AG misclassification lawsuits, including suits brought by AGs in D.C., Illinois, and New Jersey. Cozen O’Connor attorneys Chris Allen and Keturah Taylor also had discussed AG enforcement efforts regarding workforce misclassification in our State AG Pulse episode AGs Clock In On Wages.
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