Settlement of Hybrid Class Action Case for Hospital Operator

We settled a hybrid class action case for a private hospital operator for alleged failure to pay nurses for time worked due to a time keeping system that would automatically deduct time for lunches each day. Although the nurses had the ability to correct the system and record their time correctly when clocking out, they alleged that their supervisors knew that they were routinely working through parts or all of their lunches and not being paid. The case was brought both as a “collective action” under the Fair Labor Standards Act (FLSA) and as a class action for breach of state law, breach of contract and unjust enrichment claims. The parties agreed to conditionally certify the FLSA collective action and notice was sent to 1,100 nurses of their opportunity to join the collective action and only 5% of the nurses did so. The parties then agreed to certification of the class action of 2,000 nurses for purposes of settlement and agreed to a favorable settlement with which our client was quite pleased.