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Hospital Workers Overtime Pay Lawsuit Settlement

NEWARK — The majority of hospital workers are entitled to overtime pay. These workers are not just the nurses, CRNAs, and medical technicians. Hospital workers will likely include the janitors, maintenance workers, receptionists and other general hospital staff. Each hospital worker’s responsibilities are vital in some way for those who visit the hospital. And it is important that hospital workers receive the full amount of pay they are owed. This is why it is essential that hospitals carefully track the hours their employees work and properly calculate whether overtime pay is due.

Earlier this year, New Jersey hospital employees at Wilkes-Barre General Hospital reached a tentative settlement in their overtime pay class action lawsuit against the hospital. A judge must approve the terms of the settlement before it can be finalized, but the under the tentative agreement, the hospital will pay $475,000 to the affected employees. Nearly 600 hospital employees are included in the class action, which claims the hospital improperly calculated their overtime. The lawsuit originated in 2011 with a single lawsuit by a licensed practical nurse, Michele Sakalas. The class action focused on the method the hospital used in calculating overtime from 2008 to 2012.

Overtime claims can arise years before a person files. But an overtime claim may depend on what the overtime laws were when that claim arose. For instance, until 2012, New Jersey followed the 40-hour per seven-day workweek method for calculating overtime. The 40-hour method requires overtime for employees working more than 40 hours per week. However, the current New Jersey overtime law allows hospitals to use an “8-80” method for overtime calculations. This method allows employees to receive overtime when they work more than eight hours a day or more than 80 hours in the two-week pay period.

The reason the law and the method are important is because of the way hospital employees are scheduled to work. Sakalas’ work schedule had her working four eight-hours days one week, and six eight-hour days the second week. This means during the first week she worked 32 hours, but the second week she worked 48 hours. Under the 40-hour method she is entitled to overtime pay for the second week, but no overtime under the “8-80” method. The employees claim the hospital used the “8-80” method instead of the 40-hour per seven-day workweek method, which was the actual law at the time.

Overtime laws change over time. If you believe you have been denied overtime or your employer has failed to pay the overtime you are owed, contact our experienced team of overtime pay lawyers. Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page. We will discuss your situation and determine if you have a claim. If you are owed unpaid overtime and we represent you under our No Fee Promise, there will never be  any legal fees or costs unless you receive a settlement.

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