The settlement comes as legislators and organizers in New York rally for proposed legislation called Fair Pay for Home Care, which would increase the minimum wage for home healthcare workers by 150 percent.

Two Brooklyn-based home health agencies are paying millions in back wages and Medicaid payments following two settlement agreements with New York Attorney General Letitia James.

Crown of Life Care and All American Home Care were failed to comply with New York’s Wage Parity Act, which requires home health companies to pay workers who perform Medicaid-funded care an additional $4.09 per hour—or the equivalent in additional benefits—on top of the minimum wage, according to the settlement documents.

Instead, Crown of Life Care used the Medicaid funds intended for worker benefits to purchase medical stop-loss insurance for the company, the documents show.

As part of the settlement, All American Home Care paid back $4 million in Medicaid payments; Crown of Life paid $1.4 million to the Medicaid program. Crown of Life will also pay more than $1.5 million to employees who did not receive full payment of wage parity benefits, as part of a separate agreement with the New York State office of Attorney General Labor Bureau.

For the next two years, All American is also required to submit semi-annual reports proving it is in compliance with the Wage Parity Act.

“It is outrageous to cheat home health aides of their hard-earned benefits guaranteed under New York law and the Medicaid...

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