A lawsuit filed by thousands of caregivers in New York resulted in one of the largest financial settlements for wage theft in the state’s history.
Public Partnerships LLC (PPL), which acted as an intermediary for the state of New York, agreed to pay $162 million to settle a class-action lawsuit filed by in-home caregivers who alleged late payments, incomplete wages, and improper deductions.
Although the company denied acting illegally, it accepted the settlement to put an end to the litigation.
If a federal judge definitively approves the settlement, up to 200,000 home health aides in the Consumer-Directed Personal Assistance Program (CDPAP) could receive financial compensation averaging $700, although the amount will vary on a case-by-case basis, according to the plaintiffs’ attorneys.
New York’s CDPAP program is a state Medicaid program that allows people in need of assistance to select caregivers to provide in-home care.
A Case That Sets a Precedent
According to the legal team that represented the caregivers, the settlement also sets a precedent, as it is one of the first private class-action cases to be resolved under New York’s Home Care Workers Parity Law, which stipulates that Medicaid-funded in-home caregivers must receive a base wage and supplemental benefits.
Wage theft frequently affects caregivers
In the in-home care industry, wage theft can take various forms, including:
- Failing to pay for all hours worked.
- Delaying wage payments.
- Failing to pay overtime when required by law.
- Making illegal deductions from paychecks.
- Failing to pay the applicable minimum wage.
- Forcing workers to work “off the clock,” that is, without recording their hours.
In the case of New York, workers also reported that the company deducted money from their wages to fund mandatory health insurance that, according to the lawsuit, offered very limited benefits. The settlement allocates at least $25 million to compensate for those deductions.
What can you do if you’re owed money?
If you suspect you weren’t paid correctly, experts recommend:
- Keep a personal record of the hours you worked. Here’s a sample form for tracking your hours.
- Save text messages, calendars, photos of schedules, or any other evidence of the work you performed.
- Keep pay stubs or bank deposit slips.
- Make a note of when you spoke with your employer about the issue.
These documents can be crucial if you decide to file a claim.
Where can you report wage theft?
Domestic workers can file a complaint with the Wage and Hour Division of the U.S. Department of Labor or with their state’s labor agency.
You do not have to continue working for that employer to file a complaint, although there are statutory deadlines that vary by law. Complaints are confidential, and the law prohibits an employer from retaliating against an employee for exercising their labor rights.
It is important to note that labor rights apply regardless of immigration status.
Immigrant rights organizations and the Department of Labor itself note that workers can report labor violations without the agencies responsible for enforcing labor laws automatically sharing that information for immigration purposes.
However, it is recommended that domestic workers seek advice from a labor rights organization before filing a complaint.
- U.S. Department of Labor: Investigates cases related to minimum wage, overtime, and wage payments, among other issues.
- Complaints can be filed at your local Department of Labor office or by calling 1-866-487-9243.
- Your state’s Department of Labor: Many states have labor laws that offer additional protections for domestic workers.
- Legal aid organizations: If the case is complex or involves retaliation, you can seek support from legal aid organizations, worker centers, or domestic worker organizations that help file claims at no or low cost.
Here you can find a list of local chapters of the National Domestic Workers Alliance.
You can also use the digital personal assistant “Ask Aya,” an AI-powered tool created exclusively to reliably guide domestic workers and answer their questions.
Note: The National Domestic Workers Alliance is a partner organization of La Alianza.
Editor’s note: This article was originally written in Spanish and translated into English.
