Shuttered NC hospital to pay $1M to settle lawsuit over improper layoff notifications


A federal judge has approved a settlement agreement that requires Kansas City, Mo.-based HMC/CAH, which leased and operated Yadkin Valley Community Hospital in Yadkinville, N.C., when it abruptly closed in 2015, to pay about $1 million to resolve a class-action lawsuit filed by 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 notify the state, local government and affected workers 60 days before the layoffs. HMC/CAH failed to file notice with local and state officials before laying off Yadkin Valley Community Hospital's workers in 2015.

After attorney fees are paid, the 142 members of the class-action lawsuit will receive a combined $660,000, according to the report.

"We are pleased with the result as it provides the former employees with substantial compensation for the losses they experienced," Michael Kornbluth, an attorney representing the plaintiffs, told the Winston-Salem Journal.

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