Children’s Hospital Los Angeles has agreed to pay $27 million to resolve class actions brought on behalf of thousands of workers claiming they were shorted on wages and denied breaks. A Los Angeles Superior Court Judge gave final approval to the settlement agreement that was reached in mediation after the lead case was litigated for more than three years. The $27-million wage-and-hour class action settlement covers more than 9,500 current and former hourly, nonexempt employees who worked for Children’s Hospital between April 2004 and May 2016.
The lawsuits alleged, among other things, the employees were shorted on overtime, not provided meal and rest breaks and not paid promptly at the time of discharge or termination. It’s estimated that the average payments the employees will receive range from $9,076.43 for employees who worked more than 40 hours in a week allegedly without receiving proper overtime, to $2,955 for employees who worked 12-hour shifts and claimed that they were paid a lower standard wage or a straight-time wage for hours worked. Children’s Hospital Los Angeles will also pay its share of employer taxes on the wage portion of the settlement, which is estimated to add another $550,000 to the payout.