A federal judge has granted preliminary approval to a $162 million class action settlement involving Public Partnerships, LLC (PPL) and approximately 200,000 home care workers in New York. The legal action addresses allegations of payroll and benefit violations following the state’s transition of the Consumer Directed Personal Assistance Program (CDPAP) to a single fiscal intermediary model, according to court records cited by legal representatives.
This settlement represents a significant development in the application of the New York Home Care Worker Wage Parity Act, which mandates that Medicaid-reimbursed home aides receive a specific base wage combined with supplemental benefits. The litigation, filed by four current and former personal assistants—Philip Calderon, Farshad Pinchasi, Allison Fields, and Dana Folgar—alleged that PPL failed to provide accurate, timely payments and compliant benefits. While the company has agreed to the proposed settlement, a PPL spokesperson stated, “We categorically deny the allegations in this lawsuit, and the settlement reflects no admission of liability or wrongdoing.”
Background on the CDPAP Transition
The Consumer Directed Personal Assistance Program (CDPAP) serves as a critical component of New York’s Medicaid infrastructure, allowing patients to select their own caregivers, known as personal assistants. As of fall 2024, the program supported over 250,000 patients and 300,000 caregivers. The New York Department of Health’s decision to transition the program to a single fiscal intermediary model faced substantial pushback, including protests, multiple lawsuits, and the issuance of a restraining order during the implementation phase.
The class action lawsuit, titled Calderon v. Public Partnerships, LLC, was brought by plaintiffs represented by The Legal Aid Society and the law firm Katz Banks Kumin LLP. Hugh Baran, a partner at Katz Banks Kumin LLP, noted in a July 1 statement that the settlement highlights the importance of the Wage Parity Act in protecting home care workers. The funds from the $162 million agreement are designated to cover general damages, lost benefits, and the value of accrued time off for the eligible class members.
Federal Fraud Allegations
The proposed settlement arrives amid broader legal scrutiny for PPL. In June 2024, the U.S. Department of Justice (DOJ) filed a separate lawsuit against both PPL and the New York Department of Health. The federal complaint alleges that PPL secured its position as the state’s sole fiscal intermediary through an “artificially attractive proposal” that contained material misrepresentations regarding its staffing plans, financial readiness, and the quality of its in-house software.
The DOJ further contends that the company added small profits to the cost of every care hour billed through the CDPAP system. With the program processing approximately 350 million care hours annually, federal prosecutors allege this practice resulted in “tens of millions in ill-gotten gains.” The DOJ filing from June 16 asserts that this scheme caused “substantial harm” to vulnerable Medicaid patients, small-to-medium-sized businesses that were put out of business, and taxpayers who fund the program.
The Path Forward for Caregivers
The preliminary approval by the court triggers a formal process to notify the affected class of nearly 200,000 personal assistants. The settlement aims to resolve the private claims regarding wages and benefits, though it remains distinct from the ongoing federal litigation brought by the Department of Justice. A spokesperson for PPL stated that the company intends to move past the litigation to focus on supporting the individuals who rely on the CDPAP for their daily care.
Final approval of the $162 million settlement will require a subsequent hearing, where the court will evaluate the fairness and adequacy of the relief provided to the workers. As the legal proceedings continue, stakeholders in the New York home care sector are closely monitoring how the resolution of these private claims interacts with the federal government’s fraud allegations against the state’s former fiscal intermediary model.