Franciscan Health System has agreed to pay $725,000 to resolve claims that it failed to properly compensate its outpatient therapists.
The settlement benefits people who worked for Franciscan Health System in Washington as an outpatient therapist or similar role between July 8, 2018 and May 20, 2022.
The settlement also includes a subcategory of outpatient therapists who worked at least one shift at St. Joseph’s Hospital between July 8, 2018 and March 20, 2020 and who did not sign an Hours worked “.
The Franciscan health system was acquired by a larger company in 2021, Fierce Healthcare reported, and later joined with Seattle-based Virginia Mason to form Virginia Mason Franciscan Health. The health system has a number of locations and offers services for countless conditions.
According to a wage and hour class action lawsuit against Virginia Mason Franciscan Health, outpatient therapists at Franciscan Health were denied pay and breaks while working for the health system. Specifically, plaintiffs in the case allege that Franciscan Health failed to pay wages for all hours worked, altered employee time slips to deny payment of wages, and failed to provide workers with periods meals and appropriate breaks.
Franciscan Health has admitted no wrongdoing, but has agreed to pay $725,000 to resolve these claims.
Under the terms of the settlement, class members may receive payment in cash. All class members are eligible for a cash payment of the settlement, pro-rated based on the number of shifts they worked during the class period. Subclass members may also receive additional payments from the settlement.
For tax purposes, one-third of each settlement payment will be considered salary and will be subject to withholding tax. The remaining two-thirds of each settlement payment will be treated as non-wages, including penalties, improvements and prejudgment interest. Class members may be required to pay taxes on these funds.
Any residual funds from the settlement will be split between the Legal Foundation of Washington and the Franciscan Foundation. Franciscan Health will not receive any funds resulting from uncashed paychecks.
The exclusion and objection deadline is August 29, 2022.
The final settlement approval hearing is scheduled for September 23, 2022.
No claim form is required to benefit from the settlement. Class members who do not opt out will automatically receive their share of the settlement fund.
However, Class Members have the ability to dispute their settlement payment. The protest deadline is August 29, 2022.