CHS hit with lawsuit over mass layoff

Franklin, Tenn.-based Community Health Systems is being sued in Florida federal court for alleged violations of the Worker Adjustment and Retraining Notification Act. 

The lawsuit, filed Aug. 29 by a former employee, alleges CHS and ShorePoint Health Venice (Fla.), which is owned by CHS, didn't provide workers with written notice required by the WARN Act before terminating their employment in August. The plaintiff, who was laid off from ShorePoint Health Venice, is bringing the action on behalf of herself and about 600 other former employees seeking to recover damages. 

CHS ended some services, including emergency services, at ShorePoint Health Venice last month and plans to close the hospital on Sept. 22. The lawsuit alleges CHS and ShorePoint terminated employees on Aug. 29 without providing the 60 days advance written notice required by the WARN Act. 

"Defendants' purported commitment to keep the … plaintiff and the putative class members 'employed,' on paper at least, by not officially terminating them until November 22, 2022, changes nothing because the … plaintiff and putative class members were told to no longer show up for work and they are no longer paid by defendants," the complaint states. 

Employers can claim an exemption from the written notice requirement for "unforeseeable business circumstance," but the plaintiff alleges CHS and ShorePoint knew the mass layoff was imminent in April or sooner. 

The lawsuit is seeking 60 days of wages, salary, commissions, bonuses, accrued pay for vacation and personal days, pension, 401(k) contributions, health insurance and other fringe benefits for the plaintiff and putative class members. The suit is also seeking payment for medical expenses incurred during the 60-day period following termination that would have been covered and paid under the defendants' health insurance plans. 

CHS declined Becker's request to comment on the lawsuit.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars