West Virginia hospital owner, former employees settle wage dispute

Irvine, Calif.-based Alecto Healthcare Services has agreed to pay nearly $1 million for earned benefit time to employees who were displaced when Fairmont (W. Va.) Regional Medical Center closed March 19, according to the union representing the employees. 

Service Employees International Union District 1199 did not disclose specifics of the settlement, citing confidentiality. But the union said it secured all earned benefit time to be paid out to the former employees. Under the settlement, Alecto, which owns the 207-bed hospital, will pay a total of $844,342.49 to former employees for paid time off, accrued vacation time and bonus days. 

Union leaders said hospital workers plan to continue pursuing litigation against Alecto for 401(k) contributions owed to union members. West Virginia Attorney General Patrick Morrisey is working with the workers regarding these plans.

"This is a major victory for the workers of Fairmont Regional Medical Center, who continued to provide quality care to this community up until the day Alecto shuttered the doors of the hospital," said Joyce Gibson, regional director for SEIU District 1199. "By working with Gov. [Jim] Justice and Attorney General Morrisey, we are sending a message that if you are going to do business in West Virginia, you have to treat our workers with dignity and respect."

Becker's could not immediately reach Alecto for comment.

 

More articles on legal and regulatory issues:
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Former employees plan to sue West Virginia hospital over unpaid wages

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