Comfort Keepers No-Hire Clause Investigation

Migliaccio & Rathod LLP is currently investigating Comfort Keepers for allegedly violating California labor laws by restricting caregiver employment mobility.

CK Franchising, Inc. and SDX Home Care Operations, LLC, operating under the Comfort Keepers brand, are accused of including illegal no-hire and non-solicitation clauses in their California client agreements. These provisions may have unlawfully limited caregivers’ ability to pursue employment with other home care providers.

Comfort Keepers’ No-Hire Clause Deemed Unlawful by California Attorney General

A recent lawsuit filed by the California Attorney General’s Office alleges that Comfort Keepers required clients to sign contracts preventing them from hiring or soliciting the company’s caregivers for up to one year after services ended. Clients who violated this clause, even by hiring caregivers through another agency, faced a $12,500 liquidated damages penalty.

These restrictive clauses were often unknown to the caregivers themselves and are alleged to have violated California’s Unfair Competition Law. The Attorney General determined these contract terms suppressed worker mobility and limited fair competition in the home care labor market.

Comfort Keepers Ordered to Remove Anti-Competitive Contract Terms

As part of a stipulated judgment filed on August 26, 2024, Comfort Keepers agreed to the following:

• Permanently eliminate all no-hire, non-solicitation, and liquidated damages clauses from its California contracts;

• Notify franchisees, caregivers, and clients of these contractual changes;

• Pay $500,000 in civil penalties for violations of California labor law.

Comfort Keepers, headquartered in Irvine, California, operates in 88 franchise locations across the state and provides non-medical in-home services.

Were You Affected by Restrictive Employment Practices?

If you worked as a caregiver for Comfort Keepers in California or elsewhere in the U.S. and believe you were impacted by a no-hire or non-solicitation agreement, you may be eligible to take legal action.

Fill out the contact form on this page, email us at [email protected], or call us directly at (202) 470-3520 for a free and confidential consultation.