Home Health & Hospice Week

Industry Note:

Assess Your Labor Law Risk Exposure

Kindred Healthcare Inc. has agreed to pay $12 million to settle a class action lawsuit alleging labor law violations.

Louisville-based Kindred and a Gentiva subsidiary failed to pay California workers overtime, provide meal and rest breaks, pay the state's minimum wage, and keep accurate payroll records, among other things, from 2012 to 2016, said a lawsuit filed in California federal court.

The company will pay about $8.7 million to the class of some 1,600 members with an average recovery of about $5,415, reports Louisville Business First. The former Kindred occupational therapist who filed the suit will get no more than $20,000, per the agreement. No more than $3 million will go to attorney fees and the remainder will go to other administrative and legal fees, the newspaper says.

Kindred is in the midst of getting acquired by Humana (see Eli's HCW, Vol. XXVII, No. 1). Kindred stockholders voted to approve the deal, the company announced April 5. The vote came after the Delaware Court of Chancery denied a motion for preliminary injunction filed by Brigade Capital Management. Brigade opposes the deal (see Eli's HCW, Vol. XXVII, No. 11).

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