$162M Wage Theft Win for 200,000 Home Care Workers
A federal judge certified a $162 million wage theft settlement covering roughly 200,000 home care workers in New York — the largest single wage theft settlement in state history. Judge Lara K. Eshkenazi of the U.S. District Court for the Eastern District of New York approved the deal between workers and home care agency Public Partnerships LLC (PPL). Workers employed by PPL between 2025 and 2026 could receive an average payment of $680, starting early next year.
A federal judge certified a $162 million wage theft settlement covering roughly 200,000 home care workers in New York — the largest single wage theft settlement in state history. Judge Lara K. Eshkenazi of the U.S. District Court for the Eastern District of New York approved the deal between the workers and home care agency Public Partnerships LLC (PPL). The case was filed by attorneys with the Legal Aid Society and Katz Banks Kumin LLP, who alleged PPL failed to pay tens of thousands of workers for all hours worked.
What PPL Was Accused of Doing
PPL was selected by New York State in 2025 as the sole fiscal intermediary — the company responsible for processing Medicaid payments — for the Consumer-Directed Personal Assistance Program (CDPAP). CDPAP lets homebound Medicaid recipients hire a trusted friend or relative as their personal care assistant, instead of going through a private agency. Shortly after PPL took over, workers began reporting widespread mispayments. The lawsuit also alleged PPL violated New York's Worker Wage Parity Law, which requires home care agencies to provide workers with real health coverage or a supplemental cash payment. Instead, PPL enrolled workers in a limited health plan and, according to the lawsuit, pocketed 40 cents per hour from each NYC-area worker's paycheck when they didn't use that plan. PPL denied any wrongdoing as part of the settlement.
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The damage extended beyond individual paychecks. The New York Caring Majority, an organization representing home care workers and recipients, reported that as many as 150,000 workers and 90,000 consumers left the CDPAP program after PPL took over — driven by the payment chaos. Madhuri McClenry, a 56-year-old immigrant from India who has worked as a home care assistant for 12 years, described the experience to Documented: "It's kind of a nightmare for me. It's always short on pay, and very confusing. We never had this confusion before."
What the Settlement Means for Workers
Workers who were employed by PPL between 2025 and 2026 will receive an automatic lump-sum payment — no separate claim form required. Payments are expected to go out early next year via direct deposit or check by mail, with an average payout of $680. PPL will also shut down its limited health plan; workers will now receive a supplemental cash payment instead. Despite this settlement, PPL still faces three other class-action lawsuits making similar wage theft claims. In June 2026, the U.S. Department of Justice also filed a separate lawsuit against PPL, alleging the company colluded with the New York Department of Health in an unlawful scheme to take over CDPAP. Both cases remain pending.
What to Do
- If you worked for PPL under CDPAP between 2025 and 2026, watch for a direct deposit or mailed check early next year — payments are automatic and you do not need to file a separate claim.
- If you believe you are owed more than the average $680 — for example, due to many unpaid hours — contact the Legal Aid Society or Katz Banks Kumin LLP, the attorneys who filed the case, to understand your options.
- If PPL is still underpaying you or you have not received correct wages, document every pay stub and work hour. Wage records are critical evidence in any future claim.
- Immigrant workers have the same wage rights as any other worker in New York, regardless of immigration status. Filing a wage complaint does not trigger immigration enforcement.
A full breakdown of this topic — in our guide “PERM Labor Certification”.
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Under New York labor law, home care workers — including immigrants — have a full right to sue for unpaid wages regardless of their immigration status, and employers cannot use a worker's status as leverage to avoid paying. If you were underpaid by PPL and believe the $680 average settlement does not cover your actual losses, you may have grounds to opt out of the class settlement and pursue an individual claim, but that window is time-sensitive. Speak with an immigration-aware employment attorney before making that decision.
Frequently Asked Questions
Do I need to file anything to get my settlement payment?
No. Payments are automatic. Workers employed by PPL under CDPAP between 2025 and 2026 will receive a lump-sum payment by direct deposit or mailed check early next year without filing a separate claim.
Can my immigration status affect my right to receive this settlement?
No. New York labor law protects all workers regardless of immigration status. You earned those wages, and you are entitled to be paid for them. Filing a wage claim or receiving a settlement payment is not reported to immigration authorities.
PPL still owes me money beyond what the settlement covers. What can I do?
Contact the Legal Aid Society or Katz Banks Kumin LLP — the attorneys who brought the original case. Three additional class-action lawsuits against PPL are still pending, and you may have options to pursue further claims.
What happens to my health coverage now that PPL is ending its health plan?
As part of the settlement, PPL must replace its limited health plan with a supplemental cash payment to workers. This change is required going forward under the terms of the court-approved settlement.