California Labor Lawsuit Sees Settlement of $22 Million
By Heidi Turner
San Jose, CA Two lawsuits that have made the news recently highlight the importance of employers following California labor law and properly compensating employees for all hours worked. One lawsuit involves a multi-million dollar settlement for employees while the other involves employees who say patients at a hospital received inadequate care due to violations of California employee labor law.
According to an article at Cincinnati's CityBeat (August 20, 2009), Cintas Corp. will pay over $22.75 million to settle a federal lawsuit that alleged the company failed to properly pay employees overtime wages. The lawsuit was filed on behalf of employees who said they were misclassified as exempt from overtime pay as required by both state and federal laws.
The employees were uniform delivery drivers, responsible for picking up dirty uniforms and dropping off fresh ones. They were classified as salary instead of hourly workers; however, the plaintiffs argued that they drove trucks and delivered uniforms and therefore should not have been classified as exempt from overtime pay.
It has not yet been decided how many drivers are included in the settlement or how much those drivers will receive. The lawsuit was filed in the US District Court for the Northern District of California and sought compensation for unpaid overtime dating back to March, 2000.
Cintas CEO Scott Farmer said in a statement that the suit was unfounded but that the company resolved the claims through mediation to avoid the expense of litigation.
Meanwhile, former employees of Aurora Las Encinas Hospital, a psychiatric facility in California, have filed a class action lawsuit against the owner of the facility, alleging that understaffing has not only compromised patient care but has also put employees in a position of working overtime without proper compensation. The suit also alleges that employees worked in unsanitary conditions, including using a bathroom that had a toilet but no sink.
According to an article at latimes.com (August 7, 2009) employees say they were given the answers to mandatory examinations so that the hospital did not have to pay workers for time spent studying for the exams. They also say they were overworked, not paid for overtime and felt they could not provide safe care for patients.
The lawsuit seeks unspecified restitution and legal fees. One plaintiff said the goal of the suit was to improve Las Encinas, a facility that reportedly had three unexpected adult patient deaths in a five-month period during 2008. In the same time frame, a 14-year-old patient was raped.
According to an article at Cincinnati's CityBeat (August 20, 2009), Cintas Corp. will pay over $22.75 million to settle a federal lawsuit that alleged the company failed to properly pay employees overtime wages. The lawsuit was filed on behalf of employees who said they were misclassified as exempt from overtime pay as required by both state and federal laws.The employees were uniform delivery drivers, responsible for picking up dirty uniforms and dropping off fresh ones. They were classified as salary instead of hourly workers; however, the plaintiffs argued that they drove trucks and delivered uniforms and therefore should not have been classified as exempt from overtime pay.
It has not yet been decided how many drivers are included in the settlement or how much those drivers will receive. The lawsuit was filed in the US District Court for the Northern District of California and sought compensation for unpaid overtime dating back to March, 2000.
Cintas CEO Scott Farmer said in a statement that the suit was unfounded but that the company resolved the claims through mediation to avoid the expense of litigation.
Meanwhile, former employees of Aurora Las Encinas Hospital, a psychiatric facility in California, have filed a class action lawsuit against the owner of the facility, alleging that understaffing has not only compromised patient care but has also put employees in a position of working overtime without proper compensation. The suit also alleges that employees worked in unsanitary conditions, including using a bathroom that had a toilet but no sink.
According to an article at latimes.com (August 7, 2009) employees say they were given the answers to mandatory examinations so that the hospital did not have to pay workers for time spent studying for the exams. They also say they were overworked, not paid for overtime and felt they could not provide safe care for patients.
The lawsuit seeks unspecified restitution and legal fees. One plaintiff said the goal of the suit was to improve Las Encinas, a facility that reportedly had three unexpected adult patient deaths in a five-month period during 2008. In the same time frame, a 14-year-old patient was raped.
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