Kindred Healthcare (NYSE: KND) and one of its subsidiaries have agreed to settle a class action suit alleging the companies failed to pay some workers minimum wage or provide them adequate breaks, violating California law.
Louisville, Kentucky-based Kindred, along with Gentiva Certified Healthcare, reached a deal to pay $12 million to roughly 1,600 people who worked as skilled home health care clinicians during a period of time between 2012 and 2016, according to an April 6 court filing.
Kindred had not responded to Home Health Care News’ request for comment as of press time.
Specifically, the class action suit included per diem, part-time and full-time occupational therapists, physical therapists, registered nurses, licensed vocational nurses and speech therapists. The settlement is projected to provide an average recovery of $5,415 per class member.
In an initial complaint filed in 2016, the plaintiffs alleged Kindred, Gentiva and some of their subsidiaries denied wages owed under California law and violated other provisions of the California Labor Code. Gentiva was acquired by Kindred in 2015.
“[The companies] failed to pay clinicians…for all hours worked, to pay minimum wage for all hours worked and nonproductive time, and to issue accurate wage statements with all legally required information,” the complaint read. “Defendants have also failed to provide the overtime pay, meal periods, and rest periods mandated by California law.”
Kindred denied the allegations and defended itself in a subsequent answer to the complaint. Though an initial attempt to settle the dispute fell apart in April of last year, the two parties reached an agreement with the help of a neutral mediator last November.
This settlement comes as Kindred is preparing to sell its home health and hospice business to insurance giant Humana (NYSE: HUM) and two private equity groups. Last month, the firm overcame a lawsuit by a major shareholder seeking to delay or block the vote to sell the company for $9 per share.
Written by Tim Regan