County lawsuit alleges Milpitas-based company systematically underpaid caregivers, committed identity theft, and operated without a state license
Santa Clara County, CA, Oct. 13, 2025 – The County of Santa Clara has filed a civil enforcement action against a Milpitas-based home care business and its owners alleging widespread worker exploitation, wage theft, and other unlawful practices targeting immigrant in-home care workers. The business provides 24-hour, seven days-a-week care for individuals who are discharged from care facilities or in need of home care in San José, Milpitas, and surrounding communities.
The lawsuit, filed by County Counsel Tony LoPresti on behalf of the people of the State of California, accuses the defendants of paying caregivers extreme sub-minimum wages—as little as $4.17 to $10.42 per hour—for 24-hour shifts providing round-the-clock in-home care to elderly residents. Meanwhile, the company charged clients $300 to $500 a day, pocketing more than half of the amount paid for the caregivers’ labor.
The lawsuit describes caregivers—many of whom are immigrant workers with limited English proficiency—who received no overtime pay, no breaks, and were paid in cash or by electronic transfer without wage statements, concealing the true extent of wage theft. The lawsuit also includes allegations of identity theft, with at least one caregiver reporting that the defendants confiscated her passport and bank account information and performed unauthorized financial transactions in her name.
“These caregivers were entrusted with caring for our elders and most vulnerable residents, yet were subjected to some of the most egregious forms of exploitation,” said County Counsel LoPresti. “We are taking this action to hold the defendants accountable and to send a clear message that Santa Clara County will not tolerate businesses that profit by stealing from immigrant workers. Everyone deserves to be paid fairly and treated with dignity—no exceptions. We will not tolerate businesses that take advantage of immigrant workers when they are facing severe vulnerability.”
The County also alleges that the home care business operated without the required state license under the Home Care Consumer Protection Act, despite advertising itself as a legitimate home care business. The County of Santa Clara Public Guardian has twice obtained restraining orders against two of the defendants for elder abuse involving former clients, further underscoring the risks posed to both workers and seniors.
“This case is a tragedy for both the exploited workers and the seniors in their care who were endangered by these rogue business operators. The County of Santa Clara stands with workers, particularly vulnerable immigrant workers, and will continue to protect them from unscrupulous employers who believe they can exploit people in the shadows. There must be financial and legal consequences for this kind of abuse. Bad actors will be held accountable,” said Supervisor Betty Duong.
The County is seeking civil penalties, payment of unpaid wages and overtime to current and former employees, and attorneys’ fees. Beyond individual accountability, County officials noted that illegal business practices like those alleged in this case create unfair competition for legitimate care providers and shift costs to taxpayers, as underpaid workers are often forced to rely on public assistance to survive.
“Our office works every day to ensure workers know their rights and to support fair, law-abiding businesses,” said Dr. Analilia García, Chief Equity Officer and Director of the Division of Equity and Social Justice, which houses the County’s Office of Labor Standards Enforcement. “When employers exploit their workers, they not only harm individuals, they harm our entire community. This case makes clear that the County of Santa Clara will use every tool available to stop wage theft and worker exploitation.”
The County estimates that by 2030, older adults will make up 20 percent of Santa Clara County’s population and will outnumber the number of children in the county. As the population within Santa Clara County continues to age, the demand for in-home caregivers and other caregivers for elders will increase.
However, caregivers in the elder care industry are routinely exploited by employers whose profits hinge on cheating workers out of basic minimum wage and overtime protections. Caregivers who rely economically on their employers, possess limited English fluency, or otherwise lack the resources to pursue wage theft claims often struggle to recover the wages that they are owed.
“As our population ages and the demand for in-home care grows, we must ensure that the workers providing that care are treated with fairness and respect,” added LoPresti. “Santa Clara County is leading by example to make sure this essential workforce is protected.”
The County has a history of supporting workers who have endured abuse at the hands of their employers by implementing strong worker protection policies and supporting new, tougher statewide legislation aimed at protecting employee rights, such as AB 261 which was recently signed into law by Governor Newsom and increases penalties for employers who fail to pay their wage theft judgments for six months or longer.
