San Francisco’s City Attorney has filed suit against a private-equity backed home care company alleging it illegally misclassifies care managers and doesn’t provide overtime and rest breaks.
The suit announced Thursday by City Attorney David Chiu targets Arosa, an in-home care and care‑management company that serves seniors and individuals with a range of health needs. The company is owned by private investment firm Bain Capital.
The suit alleges that Arosa’s care managers perform day‑to‑day client care and coordination work, managing clients’ health and well-being. The city argues that Arosa’s treatment of care managers as exempt employees violates labor laws.
“The home care industry is essential to our seniors and vulnerable residents, and yet, it is rife with exploitation,” Chiu said in a press release. “When private equity firms buy up home care companies, they cut corners at the expense of workers and patients.”
The city asserts that care managers regularly work more than eight hours per day and 40 hours per week, but are paid a flat salary.
“Arosa requires care managers to work ‘on‑call’ periods, where they must help other employees and clients after normal work hours, including evenings, weekends, and holidays,” the city said. “On-call shifts are performed in addition to their regular job duties.”
Under California law, businesses can classify employees as exempt administrative employees only if they perform work directly related to the company’s operations or management policies and the work requires an employee to regularly exercise discretion and independent judgment, according to the city attorney’s office.