Beth Israel Deaconess Medical Center in Boston and two other Massachusetts hospitals affiliated through CareGroup, a bond-holding company, have agreed to pay $8.5 million to settle a lawsuit alleging the hospitals failed to compensate employees when they worked during breaks and before and after shifts.
The settlement, which is subject to approval by a U.S. district judge in Boston, is the first to stem from similar class-action lawsuits brought by the law firm Thomas & Solomon on behalf of employees of several hospitals and systems in Massachusetts, New York and Pennsylvania.
The CareGroup hospitals, in addition to 621-bed Beth Israel Deaconess, are 202-bed Mount Auburn Hospital in Cambridge, Mass., and 97-bed New England Baptist Hospital in Boston. In the settlement agreement, they deny committing any wrongdoing or violating any federal law. The lawsuit alleges their compensation practices violated the Fair Labor Standards Act, the Employee Retirement Income Security Act and the Racketeer Influenced and Corrupt Organizations Act.
“The settlement reflects our commitment to put this litigation behind us as we focus on the delivery of quality healthcare for our patients,” CareGroup Chief Financial Officer John Szum said in a news release.
