Shuttered NC hospital settles case over improper layoff notification

Ayla Ellison (Twitter) - Print  | 

Kansas City, Mo.-based HMC/CAH, which leased and operated Yadkin Valley Community Hospital in Yadkinville, N.C., when it abruptly closed in 2015, has agreed 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, according to the Winston-Salem Journal.

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, 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, according to the report.

After attorney fees are paid, the 140 members of the class-action lawsuit will receive a combined $660,000, according to the report. The payout each of the 140 workers receives is based on the amount they would have earned during a 60-day period.

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