LA County Sues Owner of Residential Care Facilities for Wage Theft Uses new authority to directly enforce state labor code violations
Los Angeles County announced today that it has a new legal tool to fight for the rights of workers. The County filed a lawsuit Wednesday against the owner and operators of multiple Congregate Health Living Facilities for failing to pay more than 50 employees since April 2022. The case is the first action brought by County Counsel under new authority granted by the California Labor Code sections 180 and 181, which allow the County to directly prosecute Labor Code violations.
“Los Angeles County is committed to protecting the rights of workers and holding exploitative business owners accountable when they violate the law,” said Los Angeles County Board Chair and First District Supervisor Hilda L. Solis. “Regardless of the size of the business, whether a large corporation or a small local operator, employers must not be allowed to shortchange, abuse or mistreat their employees. Wage theft will not be tolerated.”
The lawsuit seeks unpaid wages, liquidated damages and other penalties owed to workers, as well as civil penalties and injunctive relief preventing future violations. It was filed by County Counsel Dawyn R. Harrison on behalf of the People of the State of California after widespread nonpayment of wages at the facilities was identified by the California Labor Commissioner’s Criminal Investigation Unit and Bureau of Field Enforcement.
“By bringing this lawsuit, we are sending a clear message: those individuals who shield themselves behind corporate shells to exploit workers in Los Angeles County will be held accountable.” Harrison said. “My office will continue to use every tool available to protect workers, enforce the law, and ensure that no one profits from violating workers’ rights.”
The suit names multiple individuals as defendants, including Yaakov Feingold, the sole owner of these facilities, and his associates who oversaw operations and managed employees. They created 11 corporate entities to run the facilities, all of which are named as defendants. The individuals are alleged to be personally liable for the unpaid wages and statutory penalties.
County Counsel’s Affirmative Litigation and Consumer Protection Division continues to expand its worker protection efforts through partnerships with County departments, local nonprofits, worker centers, and state and federal enforcement agencies. Recent Workers’ Rights Enforcement Grants awarded by the Labor Commissioner’s Office to public prosecutors, including County Counsel, has increased the County’s capacity to combat wage theft and protect vulnerable workers across multiple industries.
California Labor Commissioner Lilia García-Brower said: “This case demonstrates how the Labor Commissioner’s resources – dedicated funding to combat wage theft and strong strategic partnership between our investigative teams and County Counsel – provide critical support to strengthen local prosecutors’ capacity to combat wage theft, hold bad actors accountable, and deliver justice for workers.”
Workers in LA County can file a wage theft or employment complaint with the County’s Office of Labor Equity by using this link: County Wage Complaint Filing
Workers anywhere in California can file a wage theft or employment complaint with the Labor Commissioner by using this link: State Wage Complaint Filing
County Counsel’s Affirmative Litigation and Consumer Protection Division will prosecute the case in civil court.
The lawsuit was filed in Los Angeles Superior Court, and a copy of the complaint is available here: People v. Feingold et al Complaint
