John Stewart
Thu, 03/30/2023
A group of nurses recently reached a settlement of their overtime claims against CHG Medical Staffing, Inc., (“CHG”) for a total payment of $3.7 million. See Carlino v. CHG Medical Staffing, Inc., Docket No. 1:17-cv-01323 (E.D. Cal.). According to a March 17, 2023 filing, the settlement will result in an average payment exceeding $3,000.00 for each of 782 affected individuals, resolving their overtime claims under the federal Fair Labor Standards Act and California state wage and hour laws.
The settlement follows a ruling by the Ninth Circuit, the federal court of appeals covering California among other states, that certain “per diem” payments must be included in an employee’s rate of pay when calculating overtime. Clarke v. AMN Services, LLC, 987 F.3d 848 (2021). Under federal and many state laws, including California’s, non-exempt employees must be paid overtime at one and one-half times their “regular rate” of pay. For purposes of calculating overtime, the regular rate must include not only an employee’s base rate of pay, but also certain types of lump sum payments, stipends, or pay differentials.
In the recent Clarke v. AMN Services, LLC, the Ninth Circuit ruled that, when determining whether per diem payments must be included in the regular rate, “[t]he fact that a payment varies with hours worked” is not only a relevant factor, but “often a particularly relevant one.” 987 F.3d at 856. The per diem paid to nurses working for CHG was tied to the number of hours they worked and therefore, they argued, should have been included in their regular rate when calculating their overtime pay. Under the settlement, CHG will pay the 782 employees covered by the lawsuit an amount equal to 96% of their potential recovery for their regular rate claims, including backpay, interest, and liquidated damages.
For more information on how employers improperly calculate the amount of overtime due, visit MSE – Wrong OT Rate & Pay Miscalculation or contact us at info@mselaborlaw.com.
