Pasadena hospital owes employees $32.9 million for unpaid overtime — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Pasadena hospital owes employees $32.9 million for unpaid overtime

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California Superior Court Judge William A. MacLaughlin recently ordered a hospital to pay its employees nearly $32.9 million in restitution.

The class of employees who will be paid includes approximately 2,117 Huntington Memorial Hospital (HMH) staffers who worked at least 10 hours of a scheduled 12-hour shift between Jan. 17, 1999, and Jan. 20, 2004, and were paid on an hourly basis.

The order was a supplemental ruling to a September 2007 decision that HMH had miscalculated the regular rate and overtime pay of employees who worked 12-hour shifts by failing to include a shift differential in its calculations.

In his 2007 ruling, the judge found that the Pasadena hospital’s pay system constituted an unfair business practice under section 17200 of California’s Business & Professions Code.

According to MacLaughlin, the hospital’s pay system was “an artifice or subterfuge which evaded and failed to comply with the overtime laws.”

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