Sometimes, Even When You May Be Right, You Can Still Be Wrong
Posted on 22-May-07 by The Timekeeper
In June of 2006, Tracy Otto, a dietary employee of Pocono Health System, filed a lawsuit alleging that the hospital was in violation of the Federal Fair Labor Standards Act (FLSA) and Pennsylvania law by failing to pay her and other similar employees properly for their overtime.
Pocono Health System had instituted what is known as an “8 and 80” schedule. What this entails is employees working a week of four eight-hour days, followed by a week of six eight-hour days. This type of schedule is not uncommon in health-care settings, and under the FSLA, employers are permitted to pay such employees on an alternative basis — instead of having to pay overtime for all hours over 40 worked in a given week, instead they can comply with the law by paying overtime when and employee works more than eight hours in any given day and when they exceed 80 hours worked in any two-week period.
The lawsuit alleged that the hospital had failed to comply with the technical requirements of the law when implementing its overtime system. The lawsuit also alleged that the hospital’s policies violated the Pennsylvania Minimum Wage Act and the Pennsylvania Wage Payment and Collection Law; these charges were dismissed by the District Court in October of 2006.
Even though Pocono Health System continues to deny the remaining allegation and insists that its policies are in compliance with all applicable law and that it has paid all employees in a far and lawful manner — they have agreed to pay an undisclosed settlement to Ms. Otto and other members of the class.
Pocono admits no wrongdoing as part of the settlement agreement, which was approved by the U.S. District Court for the Middle District of Pennsylvania on May 4, 2007. According to the press release announcing the agreement, the settlement was undertaken simply in order to avoid the “uncertainties, time, and litigation fees and expenses inherent in further litigation”.
Yet another reason to make sure your time & attendance and payroll records are scrupulously “clean” and up-to-date and that you’ve consulted with a qualified payroll expert if you’re doing anything even slightly out of the ordinary with your employees’ pay or schedules. I don’t know specifically what the problem was with Pocono Health System, but all it takes is one disgruntled employee to file a lawsuit.
You don’t want to find yourself in Pocono’s position — having done what you believe to be lawful and right, and still having to pay attorney fees and settlement costs. Make sure you’ve got all your bases covered before you find yourself in court defending your overtime policies.
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