HR Management & Compliance

Overtime Miscalculations Cost Kaiser Health Plan $9 Million






Kaiser Foundation Health
Plan will pay $9 million to resolve a class action lawsuit charging that the California health
maintenance organization violated state overtime law. The settlement covers
approximately 136,000 current and former Kaiser employees in California. The suit alleged that Kaiser
calculated overtime incorrectly, such as by not including certain kinds of pay
in employees’ regular pay rates.

 


The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.


 

In connection with the settlement, Kaiser has said that any errors or
miscalculations were unintentional and were “caused by certain systems
limitations, multiple and complex labor contract provisions covering overtime,
and historic pay practices. We regret that any of our employees may have been
underpaid even by small amounts, and we are making every effort to rectify the
situation and correct it for the future.”

 

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