Kaiser Foundation Hospitals $11M Employment Settlement

California Kaiser Foundation Hospitals employees who worked as an assistant nurse manager or assistant department administrator under job code 06017 or 949013 between Aug. 13, 2017, and Nov. 5, 2024, may be eligible to receive a cash benefit from a class action settlement.

Kaiser Foundation Hospitals agreed to pay $11,000,000 to settle a class action lawsuit alleging it misclassified certain employees as exempt, resulting in unpaid wages, missed overtime, meal and rest period violations, and other related labor law violations.

Who is eligible for a Kaiser settlement payout?

• Current and former employees are included in the class if they worked for Kaiser Foundation Hospitals in California as an assistant nurse manager and/or assistant department administrator under job code 06017 and/or 949013 any time between Aug. 13, 2017, and Nov. 5, 2024.
• Class members should have received a mailed notice.
• Employees also qualify if they worked during the PAGA period from April 29, 2020, to Nov. 5, 2024) under the same job codes.

How much is the wage and hour settlement payout?

Pro Rata Cash Payment: Each class member will receive a settlement payment determined by the number of weeks and pay periods worked during the class or PAGA period and the total number of participating class members.

No claim form required

Class members are automatically included and will receive payment unless they exclude themselves from the settlement. They do not need to file a claim.

Payout option

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

$11 million Kaiser Foundation Hospitals settlement fund

The settlement fund of $11,000,000 includes:

• Settlement administration costs: Up to $17,500
• Attorneys' fees: $3,666,666.66
• Attorneys' expenses: Up to $40,000
• Service award to class representative: Up to $15,000
• PAGA penalties: $300,000 ($225,000 to the California Labor and Workforce Development Agency and $75,000 to class members)
• Payments to class members: Remainder of the settlement fund

Important dates

• Opt-Out Deadline: June 13, 2025
• Final Fairness Approval Hearing: Aug. 12, 2025

When is the Kaiser Foundation Hospitals payout date?

Payments and benefits will be distributed approximately 69 days after the court grants final approval of the settlement.

Why is there a wage and hour class action settlement?

The class action lawsuit alleged Kaiser Foundation Hospitals misclassified assistant nurse managers and assistant department administrators as exempt from overtime and other wage protections. The plaintiffs claimed this caused unpaid wages, missed meal and rest breaks, and other labor law violations.

Kaiser Foundation Hospitals denies all allegations but agreed to settle to avoid the expense of continued litigation.

Sources

1. Class Notice
2. Settlement Agreement