California Attorney General Xavier Becerra announced the arrests and charges Friday morning against the owners of Rainbow Bright.
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The defendants -- Joshua, Noel, Gerlen and Carlina Gamos -- remain in jail under a combined $9 million bail.
According to California Attorney General Xavier Becerra, the crimes happened from Westmoor High School in Daly City, and five other neighborhoods in Pacifica and South San Francisco.
While serving the arrest warrants, Becerra said authorities also recovered 14 illegal assault weapons including three "ghost guns" without serial numbers. Officials told ABC7 News that one pistol was found unsecured, wrapped inside a blanket at the child daycare facility, allegedly within easy reach of children.
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"Rainbow Bright was cheating," said Becerra at a press conference. "Not just the workers of their pay. Not just the workers of their dignity. But you and me as taxpayers."
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It totals $8.5 million, said Becerra, who went on to say the defendants targeted the Filipino community, including recent immigrants.
"The workers were forced to live on the premises," he said. "They were locked outside in the rain when the owners were not home. One defendant is being charged with three counts of rape against a female employee."
It also states that the defendants prevented employees from leaving by threatening to turn them over to immigration officials, taking their passports, and in extreme cases raping them.
"No worker in the United States should live in fear or be subjected to violence, abuse or exploitation at the hands of their employer," said Becerra. "The charges against the Gamos family members are despicable. We must not turn a blind eye to abusive labor practices. Report it, and we will investigate and prosecute."
ABC7 spoke with one former worker on Friday. John Paul Velez fits the employee profile. He worked for the accused 10 years ago in a senior center.
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"I was surprised," he said. "Especially with the human trafficking. And 24 hours? How could you work 24 hours?"
Becerra says his office has identified hundreds of victims, and expects more.
"It was the workers who brought this case to light," he said. "And the workers who were the greatest victims of Rainbow Bright and its operations."
Officials say the arrests were part of a year-long investigation by multiple agencies.