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June 12, 2024

Overtime Lawsuit Settlement | Home Care Agency Settles Employees’ Overtime Claims for $1.8 Million

The U.S. District Court for the Northern District of Illinois issued a final order approving the settlement of claims filed by employees who alleged that their employer had an unwritten policy forcing them to under-report their work hours.
Home » News » Overtime Lawsuit Settlement | Home Care Agency Settles Employees’ Overtime Claims for $1.8 Million

On June 4, 2024, a magistrate judge in the U.S. District Court for the Northern District of Illinois issued a final order approving the settlement of claims filed by employees who alleged that their employer, a home care agency, had an unwritten policy forcing them to under-report their work hours. The total settlement, including unpaid wages awarded to the workers and attorneys’ fees and expenses, was $1.8 million.

Wage and Hour Claims | Did Home Care Agency Violate Labor Laws?

The case, Philips v. Help at Home, involved both collective and class claims under the Fair Labor Standards Act, the Illinois Minimum Wage Law, and the Illinois Wage Payment and Collection Act. The plaintiffs are “supervisors” who oversee caretakers (nurses, certified nursing assistants, homemakers, and companions) assigned to assist the defendants’ customers. In addition to their regular scheduled hours of 8:00 am to 5:00 pm, the employees alleged they were routinely required to work past 5:00 pm during the week as well as perform duties “on call” during the evenings and weekends. The employees alleged that the home care agency subtracted hours from their work time spent at the company’s facilities and refused to compensate them for time spent “on call.”

Key Takeaways from the Settlement

The parties tentatively agreed to a settlement in November 2023. In granting final approval to the settlement, the court concluded that it was “fair, reasonable, and adequate, and that the Settlement is, in all respects, in the best interests of the Settlement Class members.” The court specifically discussed the factors it considered in approving the settlement, including:

the relief provided for the Settlement Class members; the substantial discovery and litigation that has already occurred in this case; the strength of the Parties’ claims and defenses; the risk, expense, complexity, and likely duration of further litigation; the risk of maintaining class action status throughout trial; the experience and views of Class Counsel; and the positive response of the Settlement Class members.

Through the settlement agreement, the ten representative plaintiffs in the case were awarded $5,000 each for their service as representative plaintiffs. The Court also approved the plaintiffs’ request for $962,863 in attorneys’ fees and expenses.

This case is a reminder to workers that they should report their work time, and employers who require workers to under-report their work time violate the law. It also demonstrates an employee’s eligibility to receive overtime pay is based on their job duties and not their job titles, so an employer cannot avoid paying overtime just by using a title like “supervisor.”

Concerned About Unpaid Overtime? Contact our Experienced Attorneys at McGillivary Steel Elkin

McGillivary Steele Elkin represents employees, in recovering unpaid overtime and correcting misclassification of workers. MSE has represented home health aides and homecare workers in the District of Columbia.

If you are concerned that your employer has violated your rights in any of these areas, contact us at info@mselaborlaw.com.

Legal Representation for All Workers

When McGillivary Steele Elkin LLP decides to take your case, it is because we believe there is an unacceptable workplace violation that has negatively impacted you or resulted in your employer paying less than what the law requires and which we have a reasonable chance of remedying. We recognize that meritorious claims should not go unremedied because of the level of a person’s resources.

To ensure accessible and available legal representation for all our clients, MSE handles cases through different forms of fee arrangements, including contingency fees, hourly fees and fixed fees.

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