Shuttered NC hospital's settlement over improper layoff notifications receives preliminary approval

A judge gave preliminary approval on April 21 to Kansas City, Mo.-based HMC/CAH's settlement in a class-action lawsuit claiming the hospital operator didn't give employees proper notice before laying them off, according to the Winston-Salem Journal.

Kansas City, Mo.-based HMC/CAH, which leased and operated Yadkin Valley Community Hospital in Yadkinville, N.C., when it abruptly closed in 2015, agreed in March to pay about $1 million to settle a class-action lawsuit filed by three former employees alleging violations of the federal Worker Adjustment and Retraining Notification Act.

Under the WARN Act, companies with plans to lay off 50 or more workers must give 60 days notice of the layoffs to their state and local government and affected workers. HMC/CAH failed to file notice with local and state officials before laying off Yadkin Valley Community Hospital's workers in 2015.

Under the proposed settlement that received preliminary approval, the 140 members of the class-action lawsuit would receive a combined $660,000 after attorney fees are paid, according to the Winston-Salem Journal.

A final hearing on the settlement is slated for June 22.

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