Facts

On May 23, 2019, former employee Wilbert Wells filed a class action and representative action for civil penalties under the Private Attorneys General Act of 2004 against San Gorgonio Memorial Hospital, alleging various Labor Code violations. The class included all current and former employees of San Gorgonio Memorial Hospital who worked for them in California as non-exempt employees at any time between May 23, 2015, to February 20, 2023. On August 30, 2021, the operative Second Amended Complaint was filed which added Paul Vu as a plaintiff. On March 1, 2021, Daniel Navarro, Andrew Ortega, Davitshea Singletary, Kareem Terry, John Nelson, Richard Vasquez, Joseph Charogoff, Martin Felix, Sam Blagovich, Pedro Vargas, Jr., and Luis Lomeli filed a putative and representative lawsuit against San Gorgonio Memorial Hospital, alleging similar Labor Code violations.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that the defendant did not qualify as a "public entity" except from the Labor Code's protections from California workers, and successfully opposed both a demurrer and a summary judgment motion on this issue. Plaintiffs contended that defendant failed to: pay overtime wages, pay minimum wages, pay wages due upon termination, reimburse for necessary business expenses, maintain required records, provide compliant meal periods and rest breaks, and provide accurate itemized wage statements for its California employees during the class period. Plaintiffs sought back wages and other relief for the class and penalties under the California Private Attorneys General Act for all employees who worked for defendant from March 19, 2018, to February 20, 2023. Plaintiffs filed and prevailed on numerous discovery motions to seek information and data as to the entire proposed class, arguing that all non-exempt employees were similarly situated and could be properly represented by the plaintiffs.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions and denied the existence of any policies or practices that violated the law. In the end, defendant made a business decision to resolve the case, with the goal of putting money directly into the pockets of its hardworking employees, rather than continuing to litigate the case.

Settlement Discussions

On July 2, 2021, the parties participated in a full-day private mediation presided over by the Honorable Ronald S. Prager (Retired), but were unable to reach a settlement. On September 28, 2022, the parties participated in a second full-day private mediation presided over by the Honorable Angela M. Bradstreet (Retired), which ultimately in the issuance of a mediator's proposal for all putative class members and class claims asserted in the operative complaint.

Result

San Gorgonio Memorial Hospital agreed to pay $3 million to settle all claims.