News Release

US Department of Labor investigation finds Orange County assisted-living facilities operator shorted workers’ pay

Investigation recovers $159K for 13 Cornerstone Homes’ employees

LAGUNA HILLS, CA – Serving the needs of the elderly and others in residential care demands skill and commitment. More than a job, it is a vocation and a source of pride for many. Yet, regardless of the job’s essential nature, some of these workers fall victim to employers who show little concern for their employees’ well-being or for paying them all the wages they have legally earned.

A U.S. Department of Labor Wage and Hour Division investigation found Cornerstone Care Inc., an assisted-living facilities operator with locations in Laguna Hills violated the Fair Labor Standards Act as follows:

  • Charged workers for meals that they failed to provide.
  • Made payroll deductions for lodging but provided none. Instead, workers slept in facilities’ kitchens and living rooms.
  • Failed to pay workers for time spent in mandatory trainings on their days off.
  • Failed to record or pay for time employees worked during interrupted breaks.

The employer’s actions led to FLSA overtime violations, and to the department’s recovery of $158,854 in back wages for 13 employees.

“These essential workers deserve to be paid all the wages they have legally earned,” said Wage and Hour Division District Director Eric Murray in Phoenix. “The U.S. Department of Labor is committed to preventing employers from short-changing workers or making illegal payroll deductions, and gaining an unfair competitive advantage over those employers who play by the rules. We invite employers to call us with questions and speak confidentially to a trained professional about their compliance responsibilities.”

Cornerstone Care Inc. operates as Cornerstone Homes at three south Orange County locations in Laguna Hills. The assisted living facilities provide comprehensive services, short- and long-term care, hospice care and other services.

For more information about the FLSA and other laws enforced by the division, contact its toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
May 11, 2021
Release Number
21-669-SAN
Contact: Jose Carnevali
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