Home Health Care Co. Accused of California Wage Law Violations

A home health care company stands accused of California wage law violations.

Los Angeles City Attorney Mike Feuer accuses Emelyn Nishi and her businesses Health Alliance Nurses Corp. and Hand Homecare Provider Inc. of not paying full wages owed to her workers.

She has employed 200 or more immigrants over the last four years. Most of the workers are Filipino, who claim they were not paid minimum wage or for overtime pay that they earned.

Feuer filed suit using powers allocated by California’s Business and Professions Code. The unpaid wages lawsuit alleges that even though the companies would charge clients from $170 to $250 per hour for 24-hour in-home care, the employees would receive just $5.50 per hour or even less.

The California wage law violations lawsuit contends employees permitted the low wages because Nishi allegedly threatened to fire the workers or to blacklist them within the home health profession if they did not cooperate.

Additionally, employees allegedly were told they would face large penalties due to contract violations if they tried to make more money by working directly for a client rather than through Nishi’s agency.

Alleged California Wage Law Violations Include Employee Misclassification

The complaint alleges that workers were misclassified as independent contractors. Nishi is accused of avoiding federal and state payroll taxes and of trying to wriggle out of the 2016 California labor investigation into her business dealings. That was when she changed her business from Health Alliance to Hand Homecare.

John Arason, Nishi’s company compliance officer, argues that Health Alliance was merely a referral service. He says Hand Homecare actually employs workers.

Arason contends the lawsuit has no basis. Feuer, however, stands by his complaint.

“Stealing wages from hardworking men and women is reprehensible,” Mike Feuer said, according to the Los Angeles Times. “No worker should be forced into poverty because an employer denies them basic rights to a minimum wage and overtime. My office will aggressively combat wage theft and fight to ensure all workers are paid what the law demands.”

The California wage law violations lawsuit intends to stop Nishi’s alleged unlawful business practices. The suit also seeks financial restitution for underpaid staff and civil penalties of possibly $2,500 per violation.

California Wage and Hour Laws Offer Extra Protection for Workers

California wage and hour laws are different than those in other states. The federal minimum wage is $7.25 per hour, but in California, the state approved an annual increase in the minimum wage based on the employer’s number of employees. Employers in California are required to pay the higher amount.

The minimum wage for companies with fewer than 26 employees is $10 in 2017; companies with 26 or more employees must pay at least $10.50 per hour. Annual increases will occur until $15 an hour is the minimum wage in 2023.

If an employee works more than eight hours in one day or more than 40 hours in one week, that employee is owed overtime pay of one and one-half times the regular rate of pay. If an employee works a 12-hour shift, that employee in California must be paid double time.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

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