Overview
Cohen Milstein represented approximately 2,000 home health care workers in a certified Fair Labor Standards Act collective action and state wage and hour class action against Amedisys, Inc., a national home health care provider.
Home healthcare workers, including registered nurses, physical therapists, occupational therapists, and speech therapists, alleged that Amedisys used a hybrid per-visit compensation model that violated FLSA, Pennsylvania Minimum Wage Act and Kentucky Wage and Hour Act requirements for overtime-exempt employees. In addition, the workers alleged that after Amedisys began classifying them as non-exempt employees eligible for overtime pay, it discouraged them from reporting all hours worked and didn’t appropriately calculate their overtime wages.
The certified collective and class action addressed unusual overtime exemptions under federal and state law, as well as arbitration agreement enforcement issues.
On January 21, 2016, the court granted final approval to an $8 million settlement, approximately $2,400 per class member.
Case Background
Originally filed on July 25, 2012, the home healthcare workers alleged that Amedisys, a national home health care provider, with over 16,000 employees nationwide, paid its home health care registered nurses, physical therapists, occupational therapists and speech language pathologists on a per-visit rate, set using an estimate of hours that each type of visit takes. Amedisys paid for other work, such as staff meetings and trainings, on an hourly basis. Plaintiffs contended that because Amedisys mixed hourly and fee basis payments, it could not claim the “fee basis” exemption from overtime.
As workers who should be classified as non-exempt from overtime, plaintiffs contended they were entitled to be paid for all hours worked, with time and a half for overtime. However, the workers claimed that Amedisys did not accurately count their hours worked: the hours actually worked per visit were not taken into account by Amedisys, nor was time spent traveling to and from appointments. In addition, the workers claimed that time spent filling out paperwork, dropping off test samples or coordinating care with other medical service providers was similarly ignored by the company.
Soon after the lawsuit was filed, and the motion for preliminary certification of the collective action was pending, Amedisys rolled out a mandatory arbitration agreement which would have precluded workers from opting into the collective action. Plaintiffs sought an emergency order from the Court, which was granted, precluding Amedisys from applying the arbitration agreement to the pending litigation.