The attacker Luo Renchu was captured at a mountain in Xiangxiang of China's Southern Hunan Province, two days after the fight led to the slaughter of the elderly people.
The killings took place on the first day of the Chinese Lunar New Year at the privately-owned Aixin Nursing Home in Shuangfeng County.
Luo attacked elderly residents and staff with a brick, killing three and injuring 15 others.
Luo fled the scene after the attack.
Both Luo and his wife work at the nursing home and were owed a total of 40,000 yuan (USD 6,500) in unpaid wages.
They had been promised 10,000 yuan before the Lunar New Year.
Fang only paid them 6,000 yuan, which led to a dispute.
The three died in hospital and of the 15 injured, all were residents of the home except for Fang's mother and younger brother, said county official Liu Pin.
In a gruesome incident in November last year, six nurses and a co-worker at a Chinese military hospital were hacked to death by a disgruntled employee in a northeastern seaside resort town.
In another attack in a nursing home in July, 2013, 11 people were charred to death when an inhabitant of a senior citizens nursing home set fire to the facility in a row over USD 32 in northeast China.
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