Healthcare Workers to Receive $3.2 Million in Unpaid OT Deal

Healthcare workers have received final approval of a $3.2 million settlement resolving claims of unpaid wages by a nurse staffing company. This nationwide hospital staffing company, Advantage RN, allegedly failed to correctly pay its workers for overtime under federal and state law. The lawsuit that was filed back in May 2017 against Advantage RN alleged violations under the Fair Labor Standards Act (“FLSA”) and California labor law which included unpaid overtime and untimely pay. More than 400 traveling healthcare workers stand to benefit from this payout.

The lawsuit specifically claimed that the company failed to pay its staffers overtime in accordance with the law by not including bonuses and stipends when calculating overtime rates. Healthcare workers were paid an hourly wage rate and a per diem stipend plus various bonuses, such as a loyalty bonus, an extension bonus and a completion bonus. However, the calculation of overtime used by Advantage Rn did not take these bonuses into account for the overtime pay rate. As a result, staffers were not paid the correct premium overtime rates when working over 40 hours per work week.

It is not uncommon to see this tactic of overtime miscalculations used by employers across several industries. When leaving out supplemental pay such as bonuses and per diems when calculating overtime rates your employer is saving on labor costs by significantly underpaying you your hard earned wages. If you are a healthcare worker and are unsure if your overtime rate is being calculated correctly, give Fitapelli & Schaffer, LLP a call and we will gladly walk you through a free phone consultation to see if you may have a claim. You can reach us at (212) 300-0375 or visit our website for additional helpful information