U of Iowa agrees to pay $15M to settle healthcare worker overtime lawsuit

The University of Iowa's Board of Regents has agreed to pay $15 million to settle a class-action lawsuit with current and former Hospitals & Clinics employees who alleged managers didn't pay overtime, bonuses or accrued leave as quickly as state and federal laws require, the Des Moines Register reported Oct. 15. 

The board's decision comes after a federal judge ruled in March that Iowa City-based University of Iowa hospitals owed damages for the delayed pay. That ruling stemmed from a lawsuit filed in August 2019 by two nurses and a physical therapist.

Lawyers for the employees filed a motion Oct. 14 asking the judge to approve the settlement, according to the report. The lawyers said their side could have won $64 million, but they believed a higher court could have overturned a significant portion of the workers' claim, which would have reduced the amount owed to $11 million. 

A University of Iowa spokesperson told the news outlet it is "pleased to reach a final resolution that is in the best interest of University of Iowa Hospitals & Clinics employees, who are critical to our ability to deliver excellent patient care for all Iowans."

Under the proposed settlement, 11,000 workers will receive a share of $11.6 million, according to the report. Six employees who led the lawsuit will each receive $10,000, and the lawyers will receive about $3.4 million. 

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars