Facts

On November 25, 2020, Carla Zayak, on behalf of herself and others similarly situated and as a proxy for the State of California, brought a wage-and-hour class action against Sutter Valley Hospitals, alleging various Labor Code violations. On March 3, 2021, Zayak filed a first amended complaint adding Sutter Valley Medical Foundation as a defendant. The class included all non-exempt employees who have been employed by Sutter Valley Hospitals from August 8, 2016, through February 2, 2021, and who, during that period, recorded paid sick leave in at least one workweek and in that same workweek received nondiscretionary remuneration other than base hourly wages. Defendants estimated that the class consisted of approximately 14,148 individual class members. On September 9, 2022, the parties participated in a full-day, arm-length mediation before Michael J. Loeb of JAMS.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants failed to: pay sick leave at the correct regular rate of pay, furnish accurate itemized wage statements, and provide sick leave wage due upon separation of employment to its California employees during the relevant time period. Further, plaintiff brought several derivative claims for violations of California Business & Professions Code and Private Attorneys General Act penalties arising out of the aforementioned claims.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Result

Defendants agreed to pay $4,750,000 to settle all claims.