Underpaid At-Home Caregivers File Lawsuit Against Employer
The Arkansas Democrat-Gazette is reporting a story coming out of the U.S. District Court in Little Rock concerning underpaid caregivers who have filed a lawsuit against Palco, a financial management services company headquartered in Arkansas that provides support to Medicaid recipients across several states. The business has clients such as veterans, the elderly, and children who participate in at-home and community-based services and require help with daily living tasks. The suit is seeking class-action status on behalf of all people who were paid as caregivers by the company under the Independent Choices Medicaid program within the past three years.
According to the state Department of Human Services, Independent Choices assist about 3,000 Medicaid recipients who receive in-home services in processing payroll and guides recipients in paying workers who help them, most of who are often family or friends. The lawsuit says the plaintiffs and other workers have regularly worked more than 40 hours a week and weren’t paid one-and-a-half times their regular wage by their employer as required under the Fair Labors Standards Act (FLSA). Medicaid recipients are only the employer if they hired the home care worker directly, and no agency or other organization is involved, such as Palco.