The Brooklyn-based home health agency, White Glove Community Care, will pay $3.2 million after making false claims to Medicaid and cheating employees out of wages.
“Home health aides work tirelessly to provide critical care for our most vulnerable neighbors, and they deserve to receive adequate and fair compensation for their hard work,” said New York Attorney General Letitia James.
“White Glove cheated their employees, and they cheated the everyday New Yorkers whose tax dollars fund the Medicaid program. My office will always stand up against bad actors, and ensure all workers get fair pay for their work,” James said.
A Fraud Investigation
An investigation into White Glove began after whistle-blowers filed a complaint. The complaint was made under the New York False Claims Act and the federal False Claims Act.
The Office of the Attorney General’s Labor Bureau and the U.S. Attorney’s Office for the Eastern District of New York then undertook an investigation. These agencies investigated the company's activity from March 2012, to December 2018.
Through the investigation, White Glove was found to have been making false claims to Medicaid and cheating employees out of wages.
Settlement Agreements
On Dec. 9, James announced two settlement agreements with the company. The first agreement, with the OAG Labor Bureau, will see White Glove pay $2 million to present and past employees.
The second agreement is with OAG’s Medicaid Fraud Control Unit. The agreement will see the company pay $1.2 million to the Medicaid Program. A portion of the $1.2 million ($758,425.47) will go to New York state, while the remaining $505,616.98 will go to the federal government. EDNY is also party to the settlement resolving White Glove’s Medicaid fraud liability.
Through the settlement agreements, White Glove will also:
- Revise company policies and procedures
- Train personnel on updated policies subject to OAG’s approval
- Regularly report staff wages and policy implementations to OAG for a period of three years
If White Glove fails to comply, OAG can bring a civil action against the agency and demand $15,000 in damages.
“The arduous work that these aides do, day-after-day, ensures that some of our most vulnerable neighbors receive the care and are shown the dignity that they deserve,” said U.S. attorney Peace. “This settlement — the third in our continuing investigation of certain licensed home care service agencies — reflects this office’s ongoing commitment to providing home health aides the hard-earned benefits guaranteed them under New York law and the Medicaid program.”
The New York Wage Parity Act sets the standard for wages at all state-licensed home care services agencies. In N.Y.C., Nassau, Suffolk, and Westchester counties, workers must earn a base wage of $17.00 per hour. In the remainder of the state the base wage is $15.20 per hour.
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