LOS ANGELES — Lifecare Solutions Inc. received final court approval, assuming the company provides all necessary notices for the class action, of its $3 million class action wage settlement offer. The home health care agency allegedly failed to pay its delivery drivers minimum wage and overtime pay. The lawsuit was initially brought in October 2012 by Ricardo Corral.
The Drivers
Lifecare Solutions’ drivers deliver wheelchairs, oxygen tanks, medical supplies, and hospital beds for home health care needs. The drivers allegedly were not compensated for the time spent on the road, completing paperwork, and waiting for calls to come in, and their meal breaks were shortened or they were required to be “on duty” during their meal breaks. These omissions greatly reduced the number of “hours worked” for the drivers, which affected their ability to receive overtime wages.
The Settlement
The settlement covers 245 current and former Lifecare Solutions’ drivers. The drivers will receive between $50 and about $31,000 in damages based on the terms of the settlement. Settlement provides a swifter and more certain relief to the drivers than would taking the lawsuit to trial. If the case had to go to trial, it is estimated the drivers could receive as much as $11.9 million; however there are a lot of variables that could reduce or even eliminate any success in the lawsuit. At the fairness hearing, the judge found the settlement to be a fair compromise, particularly since there were no objections from class members and only one class member opted out.
Travel and Wait Times
Most states look to the Fair Labor Standards Act (FLSA) and the U.S. Labor Department’s guidance on classifying employees and determining what part of an employee’s work schedule must be paid. For instance, employers are not required to pay employees for their commute to and from work. However, according to the FLSA, if the employee’s job duties require the employee to travel during the workday, the employee must be compensated for the time spent in transit. Additionally, this time is included in the employee’s “hours worked” for overtime calculations.
The FLSA also addresses whether or not employees must be paid for time they spend waiting to work. This can be rather confusing as it requires employers to determine if the employee is “engaged to wait” or “waiting to be engaged.” The first requires the employee to be paid since they are waiting for expected work to arrive. The second, “waiting to be engaged,” does not require an employee to be paid since it is unclear if the employee will be needed.
If you are a delivery driver and believe your employer has denied you overtime pay, call our experienced team of overtime pay lawyers today at (855) 754-2795 or complete the Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.