PPL, the company overseeing New York’s Consumer Directed Personal Assistance Program (CDPAP), has agreed to pay $160 million to thousands of home care workers in a class-action settlement over unpaid wages, pending judicial approval. The lawsuit, filed in April 2025, alleges payment errors affected tens of thousands of workers in New York City, Westchester, and Long Island during PPL’s January 2025 takeover of the Medicaid-funded program.
Why is PPL paying $160 million?
The settlement resolves claims that PPL’s mismanagement during the transition—including late, inaccurate, or missing paychecks—violated workers’ rights. According to the complaint, tens of thousands of home care aides faced financial hardship due to errors in logging hours and processing payments.
PPL denies wrongdoing, with spokesperson Meg Fitzgerald stating, “We categorically deny the allegations… the settlement reflects no admission of liability.” The Legal Aid Society and Katz Banks Kumin LLP, representing the workers, have outlined distribution details if approved.
What does this mean for CDPAP workers and taxpayers?
The settlement could provide immediate relief for workers like Philip Calderon of Staten Island, who relies on CDPAP to care for his father with severe arthritis. “This will put money back into workers’ pockets,” Calderon said, emphasizing the program’s critical role for vulnerable New Yorkers.
However, PPL’s oversight of CDPAP remains under scrutiny. The Hochul administration claims the 2024 transition has saved taxpayers over $1 billion and improved program oversight. Yet, a recent U.S. Department of Justice lawsuit alleges PPL was selected through a “sham” bidding process and misrepresented its capabilities.
What happens next?
A judge must approve the settlement before payments begin. If finalized, funds will be distributed as outlined by Legal Aid and Katz Banks Kumin LLP. PPL’s future with CDPAP is uncertain; the DOJ lawsuit and ongoing worker concerns could lead to further legal or administrative action.
State officials may also face pressure to address the DOJ’s allegations, which could delay or reshape PPL’s role in the program. Workers, meanwhile, will watch closely to ensure the settlement delivers on its promises.
How does this compare to past program overhauls?
Unlike previous CDPAP expansions, which focused on gradual reforms, PPL’s takeover replaced hundreds of smaller firms in a single transition. While consolidation often aims to reduce fraud, the payment errors highlight the challenges of scaling such a complex system. Past Medicaid program changes have sometimes led to similar disputes over worker compensation.
Frequently Asked Questions
1. Who is eligible for the $160 million settlement?
The settlement covers home care workers in New York City, Westchester, and Long Island who experienced payment errors during PPL’s takeover of CDPAP operations in January 2025.
2. Does PPL admit to any wrongdoing?
No. PPL’s spokesperson denied the allegations and stated the settlement does not constitute an admission of liability.
3. What is CDPAP, and why is it important?
CDPAP is a Medicaid program allowing New Yorkers with disabilities to hire personal assistants—often family or friends—using state funds. It serves over 200,000 individuals and relies on workers like Calderon to provide essential care.
How do you think this settlement will impact home care workers in New York?