Breon Peace, United States attorney for the Eastern District of New York, and Letitia James, New York State attorney general, on Friday announced a pair of settlement agreements with two Brooklyn-based licensed home care services agencies: (LHCSA), All American Homecare Agency (All American) and Crown of Life Care NY LLC (Crown of Life).
The settlement agreements address allegations that All American and Crown of Life violated the federal False Claims Act and New York State’s False Claims Act in claiming that they paid their home care aides the minimum wages required under New York State law.
The agencies received millions of dollars in funding from Medicaid, which is funded in part by the federal government. Much of that money was meant to pay the wages and benefits of their aides.
The New York Wage Parity Act, Public Health Law sets minimum wage and benefit requirements for LHCSAs that employ home-care aides who render services to Medicaid recipients in New York City and in Nassau, Suffolk or Westchester Counties.
Under the Wage Parity Law, aides are supposed to be paid a minimum amount in the form of a base wage and a supplemental benefit. The benefit portion can include the value of vacation, holiday, and sick pay, among other things. It can also include health insurance, pension plans, or educational assistance.
Today, the minimum amount of total compensation for an aide in New York City is $19.09 per hour; for Nassau, Suffolk and Westchester Counties, the minimum is...
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