City Attorney Chiu sues private equity-backed home care company denying workers wages

San Francisco (May 21, 2026) — City Attorney David Chiu announced today that he has filed a lawsuit against private-equity backed in-home care company Arosa, for unlawfully misclassifying its employees and depriving them of overtime pay as well as meal and rest breaks. The lawsuit, brought on behalf of the People of the State of California, alleges that Arosa’s model of treating its care managers as exempt employees violates state and local labor laws, harms workers, and gives Arosa an unfair advantage over law‑abiding competitors.

“The home care industry is essential to our seniors and vulnerable residents, and yet, it is rife with exploitation. Arosa is a prime example of that,” said City Attorney Chiu. “When private equity firms buy up home care companies, they cut corners at the expense of workers and patients. I certainly wouldn’t want the people caring for my family members to be working long hours without adequate breaks and pay. That’s a recipe for disaster. What we are asking for in this lawsuit is quite simple—follow the law and pay people what they are owed.”

Background

Arosa is an in-home care and care‑management company that operates throughout California, providing services to seniors and individuals with a range of health needs. The company’s “care managers” perform day‑to‑day client care and coordination work, managing clients’ health and well-being. Care managers provide services directly to Arosa’s vulnerable client population, including providing client transportation, coordinating care between providers, managing family dynamics, and offering crisis support.

This work can prove time intensive. Care managers regularly work more than 8 hours per day and 40 hours per week, but they are paid a flat salary. Arosa requires care managers to work “on‑call” periods, where they must help other employees and clients after normal work hours, including evenings, weekends, and holidays. On-call shifts are performed in addition to their regular job duties.

Despite these hands‑on, client‑service‑oriented responsibilities, Arosa illegally classifies its care managers as exempt administrative employees, denying them overtime pay, meal and rest breaks, and related wage protections. Under California law, businesses can classify employees as exempt administrative employees only if they perform work directly related to the company’s operations or management policies and the work requires an employee to regularly exercise discretion and independent judgment. Arosa’s care managers cannot be classified as exempt as the bulk of their work does not meet these criteria.

San Francisco’s lawsuit alleges that Arosa’s misclassification and related practices violate numerous state and local labor laws and give Arosa an unfair advantage over other law-abiding businesses. The lawsuit further alleges that Arosa violated San Francisco’s Health Care Security Ordinance by failing to make required health‑care expenditures for its covered employees who work in San Francisco. The lawsuit seeks to end these practices and to recover civil penalties and restitution for impacted workers.

Private equity giant Bain Capitol acquired Arosa and LivHome in 2018. The acquisition is part of a broader trend of private equity firms buying up in-home care companies, hospitals, and other health care provider groups. This increase in private equity acquisitions in the health care industry has raised concerns over workers’ rights, patient safety, and access to care. After a bipartisan Congressional investigation, the U.S. Senate Budget Committee released a report in 2025 that found that private equity investment in health care harms patients, degrades care, and drives hospital closures.

Current or former Arosa employees with information relevant to this matter or Arosa’s employment practices more broadly are encouraged to contact the San Francisco City Attorney’s Office at ArosaWorkers@sfcityatty.org.

The case is People of the State of California v. LivHome, Inc. dba Arosa, San Francisco Superior Court, Case No. CGC-26-636483. View a copy of the complaint.

The San Francisco City Attorney’s Worker Protection Team

This case is litigated by the Office’s Worker Protection Team, established by City Attorney David Chiu in 2022. The Team’s mission is to protect the rights of workers in San Francisco and California with an emphasis on combatting systemic business practices that exploit marginalized workers. Building on the Office’s longstanding leadership in affirmative litigation, the Team investigates and litigates instances of wage theft, employee misclassification, and other abusive workplace practices.