Pocono Medical Center settles overtime suit with workers

EAST STROUDSBURG — Pocono Medical Center will pay up to $280,000 to settle a class-action overtime dispute involving perhaps hundreds of workers.

The East Stroudsburg hospital's parent company — Pocono Health System — and plaintiff attorney Peter Winebrake of Dresher announced the out-of-court settlement of a federal lawsuit in a joint press release.
The May 4 agreement, filed with the Middle District Court of Pennsylvania, stipulates that neither party comment on the terms beyond the wording of their joint news release.

The suit, initially filed on behalf of two kitchen workers, contends the hospital consistently shorted some employees out of legally entitled overtime payments through an "8 and 80" work schedule.

This consists of a four-day work week (then three days off), followed by a six-day work week (then one day off).

Former dietary worker Traci Otto of Stroudsburg and former chef John Junker of Bushkill filed suit objecting to the medical center's failure to pay eight hours of overtime — at time and a half — for each of the six-day, 48-hour weeks.

They claimed this violated federal law.

Hospital management, which admits no wrongdoing in the settlement, contends another provision of federal law allowed them to use the "8 and 80" work schedule for health workers without paying overtime. They said overtime payments are mandated only when the two-week pay period exceeds 80 hours, or if an employee works more than 8 hours in a single day.

"While we firmly believe that our actions were in compliance with the Fair Labor Standards Act, we wanted to resolve the matter in an equitable, timely manner given the significant expense associated with ongoing litigation," Pocono Health System CEO and President Richard J. Henley said in the joint news release.

Winebrake, an attorney specializing in representing workers in wage and hour disputes, said the agreement is fair to past and present employees.

"I'm pleased with the settlement, which allows the hospital's dedicated workforce to receive timely payments and avoid the delays and uncertainties of further litigation," Winebrake said in the press release.

The statement doesn't say The statement doesn't say how many employees are entitled to share in the payments, but that the hospital will pay $280,000 if at least 90 percent of eligible workers opt into the settlement. If 70 percent opt-in, the settlement fund will total $265,000. If 60 percent opt-in, the fund will be $250,000.

Junker — employed at PMC from June 2004 through September 2005 — reached a separate agreement in March for a $10,000 settlement of his claim. The hospital had argued, in part, that Junker was a management employee not entitled to overtime. Junker said he was paid an hourly wage and was treated as a regular wage employee.

Otto — employed from April 2004 through May 2005 — will receive $5,000, in addition to a share from the settlement fund. The agreement says the $5,000 is for her service on behalf of other workers who will share in the settlement, and for "off-the-clock" claims when she says she worked during breaks and meals without compensation.

Winebrake and other plaintiff attorneys will apply to the court for 30 percent of the settlement fund proceeds, plus up to $5,000 for out-of-pocket costs.

Service Employees International Union 1199P, which wasn't a party to the class action lawsuit, won the right last December to represent 525 service and skilled and maintenance workers in collective bargaining. The union and management are in the process of negotiating their first contract.

Neal Bisno, the union's secretary-treasurer, said his organization will work with the plaintiff's attorney to make sure every employee entitled to a share of the settlement gets it. He said the overtime dispute points to the need for the union.

"We'll be working in the contract negotiations so that everyone is paid fairly so that they don't have to go through the courts," Bisno said.

Bisno said he isn't sure how many PMC employees worked the "8 and 80" schedule and might be entitled to compensation under the agreement.
source : www.poconorecord.com