Friday, February 15, 2013

Federal Court Decertifies Another Auto-Deduct Meal Break Case Against a Healthcare Provider

Building upon a growing body of case law finding automatic-deduction meal break claims are not suitable for class or collective action treatment (see here and here), an Ohio federal judge decertified a collective action against a national system of medical and rehabilitation care facilities by registered nurses, licensed practical nurses, certified nursing assistants, and admissions coordinators who claimed they were not paid for missed or interrupted meal breaks that were automatically deducted from pay. In Creely v. HCR ManorCare, Inc., Littler attorneys convinced the court that the employees’ experiences were too diverse to allow the case to proceed as a collective action under the Fair Labor Standards Act (FLSA).

Although they acknowledged that the healthcare provider had a policy for overriding the automatic deduction, the employees claimed that this “illegally shifted the burden of monitoring compensable work time to individual employees” by requiring employees to cancel the automatically deducted time when they did not receive an uninterrupted meal break. The court rejected this theory, as a matter of law.

The employees also argued that they were not trained or informed about the override policy, and they did not report missed or interrupted meal breaks because managers discouraged them from doing so. The court disagreed, stating: “What is apparent from the record here is that Plaintiffs’ knowledge of and training on the policy, and the application of the auto-deduct policy itself, varied in large part depending on the individual managers at Defendant’s facilities.”

At the lenient first stage of the case, the court had conditionally certified the case as a collective action, and notice was sent to approximately 3,200 employees at 29 facilities in 27 states. Less than 10 percent, or 318 current and former employees, opted-in to join the lawsuit. The discovery and depositions demonstrated that each opt-in’s situation was unique – requiring individual findings of fact and individualized defenses.

To read the full article, click here

Source: Healthcare Employment Counsel
 
This information is intended to be educational and should not be considered legal advice on any specific matter.