Kaiser settles wage-and-hour suit for $5.4 million — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Kaiser settles wage-and-hour suit for $5.4 million

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The Kaiser Foundation Health Plan has agreed to settle a class-action wage-and-hour lawsuit brought by 770 California employees. Under the terms of the settlement, Kaiser agreed to pay $5.4 million, $3.7 million of which will go directly to the class members who claimed they were misclassified and, as a result, missed out on overtime pay.

According to the employees, Kaiser misclassified them as “executive, administrative or professional employees” in order to avoid paying them for missed meal breaks and hours worked over 40. The employees, who were site-support specialists, filed suit in May 2008 arguing that while the company was updating its software system, Kaiser violated the Fair Labor Standards Act and California law.

Judge Irma E. Gonzalez of the U.S. District Court for the Southern District of California granted preliminary approval to both the class and the proposed settlement.

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