A California company was fined $4.4 million for misclassifying caregivers as independent contractors.
The California Labor Commissioner’s Office cited Hart Placement Agency Inc., a Canoga Park based company, and its principals, Annie Ghaw and Hartmann Ghaw, for misclassifying 144 caregivers as independent contractors who were working in homes throughout Los Angeles County.
An LCO investigation reportedly found that Hart Placement, operated by a mother and son team, misclassified caregivers and denied them legal protections, including accurate wage statements and paid sick leave. Of the total $4,423,450 cited, $4,266,450 is owed directly to the affected workers.
From October 2022 through December 2024, Hart Placement reportedly required caregivers to obtain business licenses and file fictitious business name statements to enable them to misclassify the workers as independent contractors. According to LCO’s investigation, Hart Placement maintained control over caregiver schedules, duties and compensation, and required them to sign independent contractor agreements without providing copies.
Investigators say caregivers were instructed to falsify timesheets or sign documents to conceal shifts exceeding 12 or 24 hours and did not receive paystubs or paid sick leave required under labor law.
LCO’s investigation followed a referral from Pilipino Workers Center of Southern California, a community-based organization that helped identify witnesses who cooperated with the investigation.
Employers cited by LCO have the right to appeal citations within 15 business days after service. The defendants have appealed, and a hearing date is pending.
Topics
California
Was this article valuable?
Here are more articles you may enjoy.
The most important insurance news,in your inbox every business day.
Get the insurance industry’s trusted newsletter
