Approximately 175 health workers recently sued Health Resource Solutions (HRS) for unpaid overtime wages. The class representative filed the lawsuit as a class action against HRS. The class action complaint alleged that HRS did not pay overtime wages to its health workers as required by labor laws. This month, the parties were able to reach a settlement that the Court approved.
In the class action, the complaint claims that HRS wrongfully classified nurses and therapists as exempt from overtime pay. In reality, the complaint alleges, these employees should have been classified as non-exempt. Accordingly, they should have received overtime compensation. Specifically, the class alleged that HRS violated the FLSA, as well as Illinois laws related to minimum wage pay.
Furthermore, the complaint claims that HRS and its owners knew that their employees were not actually exempt. Therefore, they allegedly knew that they were violating the law. To be classified as exempt, an employee must perform very specific job functions, and receive salary compensation. According to the complaint, neither was the case here. And, HRS allegedly knew it.
In addition to the class action, tens of other employees brought separate claims against HRS. While these claims were initially handled individually, the settlement resolves all of them.
After some litigation, the parties reached a settlement of $900,000. After paying for the fees and costs, the settlement awarded the employees a little under $600,000. The class representative received an award of $7,500. The plaintiff and HRS applied to the Court to approve the settlement. In response, the Court found the settlement to be fair and reasonable. Moreover, the judge indicated that the settlement appears to be in the employees’ best interest.
According to the documents filed with the Court, HRS will use settlement funds to pay employees’ claims, while remaining settlement funds will be retained by HRS.
If you believe your employer is violating the FLSA by not paying you overtime wages, please do not hesitate to contact Zakay Law Group for a free consultation with our California employment attorney.