California Labor Commissioner’s Office Reaches $5.5M Wage Theft Settlement

The California Labor Commissioner’s Office reached a $5.5 million settlement against Adat Shalom Board and Care Inc. to compensate 148 workers who worked at the employer’s six adult care facilities in Los Angeles.

The employees cared for elderly residents 24 hours a day, six days a week, but were only paid for six hours each day, according to the settlement.

The first payment of $2 million under the settlement agreement has been distributed to the workers.

The Labor Commissioner’s Office opened its investigation in June 2017 after receiving a report of labor law violations from the Pilipino Workers Center, and issued citations in 2018. The PWC is a non-profit, community-based organization that organizes and advocates low-wage workers, including residential care workers.

Adat Shalom Board & Care and its owner/operator Angelica Reingold appealed the citations, which were upheld in 2021. The Labor Commissioner’s Office later filed a lawsuit to reverse the transfer of assets, which resulted in the $5.5 million settlement.