Kaiser Foundation Hospitals $7M Employee Settlement

Individuals who worked as a nonexempt employee for Kaiser Foundation Hospitals in California between Jan. 1, 2024, and Dec. 31, 2024, you may be eligible to receive a payment from a class action settlement.

Kaiser Foundation Hospitals has agreed to pay $7 million to resolve a class action lawsuit alleging multiple wage and hour violations, including unpaid wages, overtime, missed meal and rest breaks, inaccurate wage statements and other employment law issues.

Who is eligible for a Kaiser Hospital settlement payout?

Class members are individuals who were employed as a nonexempt employee by Kaiser Foundation Hospitals in California at any time between Jan. 1, 2024, and Dec. 31, 2024.

The settlement also recognizes two additional groups within the class:

• FLSA subclass: Nonexempt employees who worked for Kaiser Foundation Hospitals in California during the same period and are eligible for claims under the Fair Labor Standards Act (FLSA).
• PAGA subclass (Aggrieved employees): Nonexempt employees who worked during the period and are eligible for penalties under the California Private Attorneys General Act (PAGA).

Each class member’s estimated payment is determined by the number of workweeks and pay periods worked during the class period, as documented in Kaiser Foundation Hospitals’ employment records:

• Individuals who worked at least one day in a workweek during the class period, that week counts towards their payment calculation.
• Individuals who worked at least one day in a pay period during the class period, that pay period counts toward their PAGA payment calculation.

How much is the wage and hour class action payment?

The settlement provides three types of payments:

• Individual class payment: Each class member will receive a payment from the net settlement fund, based on the number of workweeks worked as a nonexempt employee during the class period, divided by the total workweeks worked by all participating class members.
• Individual FLSA payment: Each FLSA class member will receive a payment from a $200,000 fund allocated for FLSA claims, based on the number of FLSA-eligible workweeks worked, divided by the total FLSA workweeks worked by all FLSA subclass members.
• Individual PAGA payment: Each PAGA class member will receive a payment from a $125,000 fund allocated for PAGA penalties, based on the number of pay periods you worked, divided by the total pay periods worked by all aggrieved employees.

No claim form required to receive a settlement payout

Class members do not need to file a claim to receive a payment. Payments will be issued to the last known address on file with Kaiser Foundation Hospitals. Class members can submit a change of address request online through the settlement website, or notify the settlement administrator in writing.

Class members who disagree with the number of workweeks or pay periods listed in their notice, may submit a written challenge with supporting documentation, such as pay stubs or other employment records, to the settlement administrator by Dec. 13, 2025.

Settlement administrator’s mailing address: ILYM Group, P.O. Box 2031, Tustin, CA 92781

Payout options

Eligible class members will receive a paper check mailed to the address on file.

$7 Million Kaiser settlement fund

The $7,000,000 settlement fund includes:

• Settlement administration costs: Estimated not to exceed $280,000
• Attorneys’ fees: Up to $2,333,333.33
• Attorneys’ expenses: Up to $50,000
• Service awards to class representatives: Up to $10,000 per plaintiff, $30,000 total
• LWDA PAGA penalty payment: $375,000 to the state
• Payments to class members: Remaining settlement funds

Important dates

• Initial mailing of notice: Oct. 14, 2025
• Challenge deadline: Dec. 13, 2025
• Deadline to opt out: Dec. 13, 2025
• Class members cannot opt out of the PAGA portion of the settlement

• Final approval hearing: April 9, 2026

When is the Kaiser Foundation Hospitals employee settlement payout date?

Payments will be mailed to eligible class members approximately 70 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that Kaiser Foundation Hospitals violated California labor laws by failing to pay overtime and minimum wages, provide meal and rest breaks, issue accurate wage statements, and comply with other wage and hour requirements. The company denied any wrongdoing but agreed to settle to avoid the cost and uncertainty of continued litigation.

Sources

1. Settlement website
2. Official class notice
3. Official settlement agreement