Kaiser Foundation Settles Suit with Employees over Unpaid Wages

A class action lawsuit filed against Kaiser Foundation Hospitals by their employees was settled on Tuesday in the Southern District of California. The court approved a settlement of $1,475,000 for the plaintiffs in exchange for the releasing of any and all claims relating to the allegations in the complaint.

The plaintiffs’ Motion for Final Approval of Class/Collective Action Settlement and Motion for Attorney’s Fees, Litigation Costs, Class Representative Incentive Awards and Settlement Administrative Expenses were approved, finalizing this case. After deducting the attorney’s fees and other expenses, the remaining $922,600 will be distributed between the 468 class members. Attorney’s fees account for 30% of the settlement, and lead plaintiffs Monica Smith, Erica Sierra and Christa Fox will receive incentive rewards. Both parties will have until June 15, 2022 to certify their compliance with the Agreement and the completion of the settlement distribution. These results come after two years of litigation to finalize an agreement between the Kaiser Foundation and their workers.

A preliminary agreement was reached on February 13, 2019, after plaintiffs alleged that they were not fairly compensated “for certain tasks performed at the start of each shift, during their off-the-clock breaks, and at the end of their shift.” However, the Court denied the motion to settle as they were concerned with the structure and some of the Fair Labor Standards Act claims. On October 6th, 2020, an amended settlement was preliminarily approved by the Court after they found it to be “fair, reasonable, and adequate,” and a Fairness Hearing occurred last Wednesday with no complaints from either party.

The plaintiffs are represented by Finkelstein & Krinsk, LLP and Sommers Schwartz, P.C.