Many home care aide businesses operate legally, but some off-the-books residential care homes cause harm to all involved with them. A recent raid rounded up the owners of 19 care homes and charged them with fraud.
Three companies figured prominently in the raids: Abraham Rest Homes Inc., Sanchez Abraham Corporation, and Florin White Dove Care Homes. Investigating officers allege that these businesses committed insurance violations and felony counts of tax and wage theft.
Recent news reports uncovered that many immigrant workers in the home care aide sector are caring for seniors 24/7 and being reimbursed as little as $4.00/hour. Many of the caregivers work from 12 to 16 hours a day. Rest home owners profited at the expense of their workers and ultimately built up equity in several million-dollar homes.
As a result of the raids and arrests, more than 60 employees are owed $2 million. The three companies are facing fines of $624,000, money to be split among the workers. The fined rest homes are allowed to remain open, provided that they start paying legal wages and proper taxes. They must also deal with other insurance matters relating to their workers.
Homes that operate under the radar and attempt to take advantage of their workers are creating serious issues for the home care sector as a whole. California labor laws are in place for a reason – to protect worker’s rights. Ignoring those rights will result in fines and penalties.