Adviser LeadingAge New York Winter 2014 Winter 2014 | Page 17
Trends in Healthcare...
(continued from page 15)
to challenge alleged violations of federal and/
or state wage-and-hour laws, such as the Fair
Standards Act of 1938 (FLSA) and its state
counterparts. A popular plaintiff ’s strategy in
this regard, which presents an exceptional threat
to employers through potential class actions,
is to claim either a “single employer” or “joint
employer” theory, or both. Using one or both
theories, plaintiffs who were simultaneously
employed by two or more companies who
shared common ownership will argue that
the aggregation of their hours is necessary for
overtime purposes because of a close functional
relationship between the entities. Those plaintiffs
will seek unpaid overtime, liquidated damages
and attorney fees.
Our research also shows a significant increase
in national origin discrimination claims – ,
particularly as workforces strive to achieve
diversity – and disability discrimination cases,
especially where employers must navigate
between disability discrimination and family
leave laws. Recent trends also show a stark
increase in retaliation and whistleblower claims.
We anticipate these somewhat drastic upticks
will be difficult to combat for most companies.
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Most companies we deal with often experience
documentation failures, a lack of informed
human resources personnel and insufficient
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legal training. Healthcare companies, which are
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usually quite adept at documenting everything
that happens on a day-to-day basis, are no
different. Our healthcare company audits
have revealed poor documentation in hiring
Right People. Right Results.
(applications, interviews and references),
employee handbooks and policies, discipline
investigations and communications with
employees. After all, events that are not properly documented didn’t really happen.
Sophisticated employees’ and plaintiffs’ counsel have made defending these claims timeconsuming and expensive. According to a recent survey, the average cost for defending an EPL
claim is $70,267.11 These claims are often fact-intensive and quite capable of surviving defense
summary judgment motions, as witnessed across several circuits.12 The trend only serves to
emphasize the need for employers in all industries, but particularly in the healthcare industry,
to reassess their liability coverage and, if necessary, engage qualified counsel to perform an
audit of their employment practices.
11
12
Id.
See Thompson v. Real Estate Mortgage Network, 748 F.3d. 142 (3d Cir. 2014); Lundy v. Catholic Health Sys.
Of Long Island, 711 F.3d 106 (2d Cir. 2013); Gonzalez v. Old Lison Restaurant & Bar, 820 F.Supp.2d 1365
(S.D. Fla. 2011).
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