Franciscan Health System wage-and-hour $725K class action settlement

Franciscan Health System agreed to a $725,000 lawsuit settlement resolving claims it failed to properly compensate its outpatient therapists.

The settlement benefits individuals who worked for Franciscan Health System in Washington as an outpatient therapist or similar role between July 8, 2018, and May 20, 2022. 

The settlement also includes a subclass of outpatient therapists who worked at least one shift at Saint Joseph’s Hospital between July 8, 2018, and March 20, 2020, and who did not sign an “hours worked” acknowledgement.

The Franciscan Health System was acquired by a larger company in 2021, Fierce Healthcare reported, and was then combined with Seattle-based Virginia Mason to form Virginia Mason Franciscan Health. The health system has a number of locations and offers services for countless conditions.

According to a wage-and-hour class action lawsuit against Virginia Mason Franciscan Health, outpatient therapists at Franciscan Health were denied wages and rest breaks while working for the health system. Specifically, plaintiffs in the case argue Franciscan Health failed to pay wages for all hours worked, altered employee time records to deny wage payments and failed to provide workers with proper meal periods and rest breaks.

Franciscan Health hasn’t admitted any wrongdoing but agreed to pay $725,000 to resolve these claims.

Under the terms of the settlement, class members can collect a cash payment. All class members are eligible for a cash payment from the settlement, prorated based on the number of shifts they worked during the class period. Members of the subclass may also receive additional payments from the settlement.

For tax purposes, one third of each settlement payment will be considered wages and be subject to tax withholding. The remaining two thirds of each settlement payment will be treated as non-wages including penalties, enhancements and pre judgment interest. Class members may be responsible for paying taxes on these funds.

Any residual funds from the settlement will be divided between the Legal Foundation of Washington and the Franciscan Foundation. Franciscan Health will not receive any funds resulting from uncashed settlement checks.

The deadline for exclusion and objection is Aug. 29, 2022. 

The final approval hearing for the settlement is scheduled for Sept. 23, 2022.

No claim form is required to benefit from the Franciscan Health lawsuit settlement. Class members who do not exclude themselves will automatically receive their share of the settlement fund. 

However, class members do have the option to dispute their settlement payment. The dispute deadline is Aug. 29, 2022.

Who’s Eligible

The settlement benefits individuals who worked for Franciscan Health System in Washington as an outpatient therapist or similar role between July 8, 2018, and May 20, 2022. 

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Dispute Payment Deadline

08/29/2022

Case Name

Gretchen C. Krall v. Franciscan Health System, Civil Case No. 21-2-06585-8, in the Superior Court for the State of Washington in and for Pierce County

Final Hearing

09/23/2022

Settlement Website

CPTGroupCaseInfo.com/FaciscanHealthSettlement

Claims Administrator

Krall v. Franciscan Health System Settlement
c/o CPT Group, Inc.
50 Corporate Park
Irvine, CA 92606
888-598-2932

Class Counsel

James B Pizl
ENTENTE LAW PLLC

Defense Counsel

Donald L Samuels
POLSINELLI PC