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UPDATE:
- On July 29, 2021, the Court moved the preliminary settlement approval hearing off-calendar.
- The parties are waiting for the Court to decide the motion.
- If the motion is granted, Class Members will receive a notice via mail and email, and the settlement website will be updated.
Kaiser employees have secured an $11.5 million settlement in a class action lawsuit accusing the health care provider of racial discrimination.
Lead plaintiffs, current and former employees, along with Kaiser Permanente, announced the settlement agreement Thursday. The settlement will cover a proposed Class of more than 2,000 current and former Black Kaiser employees in California who were allegedly underpaid and underpromoted compared to their non-Black counterparts.
Class Members include African-American or Black individuals who were employed in certain jobs for Kaiser Permanente in California between Jan. 1, 2015, and March 31, 2021. A full description of the Class can be found on the settlement website.
If approved, the settlement will provide a monetary award to Class Members. Each award will be based on the Class Member’s wages. In addition, Class Members can apply for an enhancement of their award based on missed promotional opportunities.
Class Members will be automatically be entered into the settlement, but will need to file a form to claim an enhancement. Class Members who wish to opt-out of or object to the class action settlement will need to do so by a yet-to-be-determined deadline.
In addition to monetary relief, the class action settlement requires Kaiser to implement workplace programs to ensure compensation and promotion opportunities for Black employees are fair and equitable.
Under the terms of the settlement, Kaiser will hire an independent job analyst to review and manage positions to ensure that equitable opportunities are provided to Black employees.
The class action lawsuit was lodged by current and former Kaiser employees who had worked for the health care provider for decades. They claimed that Kaiser Permanente systematically underpaid Black employees and failed to provide promotions at the same rate as non-Black employees.
In addition, the health care system has agreed to undergo an annual pay analysis over the next three years.
The plaintiffs accused Kaiser of racial discrimination and violating California employment laws as well as the Civil Rights Act.
Though the complaint in the class action lawsuit was filed in a California court the same day as the settlement agreement, the parties say that the $11.5 million deal comes after two years of negotiations.
“As a mission-driven organization — and a nationally recognized equity, inclusion and diversity leader — we hold ourselves accountable for living our values by strengthening our inclusive culture and expanding our work to address any disparities and their root causes,” Kaiser Permanente reportedly told Becker’s Hospital Review, stating that the company is increasing its efforts to advocate for just treatment, as well as accountability within its own organization.
The proposed settlement agreement still needs to undergo approval by the California Superior Court.
Are you a current or former Kaiser employee? Will you take part in this class action settlement? Tell us about your experience in the comment section below!
The lead plaintiffs are represented by Felicia Medina of Medina Orthwein LLP and Kelly M. Dermody of Lieff Cabraser Heimann & Bernstein, LLP.
The Kaiser Employees Racial Discrimination Class Action Lawsuit is Shelby S., et al., v. Kaiser Foundation Health Pland, Inc., et al., Case No. CGC-21-590966 in the Superior Court of California County of San Francisco.
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2 thoughts on$11.5M Settlement in Kaiser Employees’ Racial Discrimination Class Action
Si ocupo una consulta para una demanda laboral
Yes I am a former African American Kaiser employee and I was wrongfully terminated. And would like to speak to someone