Martins Ferry-based East Ohio Regional Hospital and its owner and CEO, John Johnson, MD, have been hit with a lawsuit following the hospital’s March 14 layoffs and March 21 closure.
The lawsuit alleges that the hospital violated the Fair Labor Standards Act by not paying employees their final paycheck and conducted mass layoffs and closure without the required legal notice under the WARN Act, according to an April 7 news release from the law firm Gold, Khourey & Turak — one of two law firms heading the lawsuit — that was shared with Becker’s.
“East Ohio Regional Hospital has failed to pay its employees their final wages, including compensation for hours worked and overtime,” the release said. “Employees who relied on these paychecks for their livelihoods were left without their wages after the hospital’s closure, compounding the hardship caused by their sudden job loss.”
The lawsuit also claims the hospital violated the WARN Act, which directs employers to give employees at least a 60 days notice prior to shuttering a facility or conducting layoffs, and left workers “blindsided” with no warning or adjustment time after the hospital closed.
Compensation for unpaid wages, penalties for failing to follow the WARN Act and additional damages for labor law violations are also being sought in the lawsuit.
On March 7, East Ohio Regional Hospital employees were not paid as scheduled. Dr. Johnson told employees in an email the administration was “working hard to enable a disbursement to take place on or before” March 11. The hospital then notified employees that it would lay off “ancillary services” beginning March 14 and closed shortly after on March 21.
Becker’s has reached out to the hospital for comment and will update this story should more information become available.
