NYC Home Care Giant Americare Hit With $55 Million Penalty for Systemic Wage Theft

NEW YORK – New York Attorney General Letitia James today announced a brutal reckoning for Americare, Inc., a New York City home care services agency accused of systematically underpaying thousands of home health aides and defrauding the Medicaid program. The investigation by the Office of the Attorney General (OAG) revealed a calculated scheme to deny workers legally mandated compensation while simultaneously pocketing Medicaid reimbursements. The result? A landmark $55 million settlement – the largest wage parity agreement ever secured by the OAG.

“Americare underpaid these workers for years, violating the law and cheating taxpayers,” Attorney General James stated bluntly. “Today’s agreement returns nearly $55 million to the selfless individuals who earned it and to the Medicaid program they serve. My office will continue to fight for every dollar owed to New Yorkers and ensure no company profits by stealing from workers or from Medicaid.” The aides, largely women, immigrants, and people of color, provide essential in-home care – bathing, dressing, feeding, lifting – often under grueling physical and emotional conditions.

The OAG investigation uncovered a disturbing pattern between 2014 and 2020. Americare claimed to be paying aides through wages *and* benefits like paid time off and health coverage. However, the company tracked the full legally required payment amounts, then systematically failed to deliver them. More than 10,000 workers were shorted nearly $45 million in legally owed compensation – a figure pulled directly from Americare’s own internal accounting. The company elected to pay aides through a combination of wages and benefits such as paid time off and health coverage.

Under the terms of the agreement, Americare will shell out $44,999,648 over the next 32 months to compensate current and former aides for the unpaid wage parity benefits owed between January 1, 2014, and March 31, 2020. An independent settlement administrator will contact the more than 10,000 eligible workers with instructions on claiming their restitution, funded by an additional $350,000 from Americare. Beyond the back wages, Americare will also pay $10 million to resolve federal and state False Claims Act liability for illegally seeking Medicaid reimbursement while failing to comply with wage parity laws. $6 million will go to New York State, and $4 million to the federal government.

This isn’t just about money. Attorney General James is demanding a complete overhaul of Americare’s policies and procedures to ensure full compliance with the Wage Parity Act. The company will be required to train staff on the updated rules and provide regular reports to the OAG for three years, or six months after all payments are completed – whichever comes last. This is a clear message: exploiting vulnerable workers will not be tolerated.

The New York Wage Parity Act, enacted to ensure fair compensation for home health aides, establishes minimum wage and benefit requirements for licensed home care services agencies (LHCSAs) providing services to Medicaid recipients. Medicaid reimbursement is directly tied to compliance. Americare’s scheme deliberately undermined both the law and the program, enriching itself at the expense of those who provide vital care. This settlement sends a strong signal that the OAG will aggressively pursue those who prioritize profit over the well-being of New Yorkers.