In a major victory for employees, a class action lawsuit against Providence Health & Services in Renton, Wash. resulted in a significant judgment in favor of the workers who alleged they were underpaid for many years. The court ruled that the health system must pay back wages to 33,000 hourly employees who were affected by the organization’s practice of underpaying them through a time clock rounding policy.
The initial complaint was filed in 2021, where the employees described the organization’s time clock rounding policy as outdated and unfair. The court found that the systematic underpayment amounted to over $98 million in lost wages. Due to the court’s determination that the violations were willful, Washington state law mandates that the fines for punitive damages be doubled. This means that the total judgment in favor of the workers is anticipated to surpass $200 million.
This landmark court decision highlights the importance of fair compensation practices in the workplace and holds organizations accountable for underpaying their employees. The judgment also serves as a warning to other employers who may engage in similar practices, emphasizing the need for transparency and fairness in wage policies. The employees who were affected by Providence Health & Services’ underpayment will finally receive the compensation they rightfully deserve, thanks to the successful outcome of the class action lawsuit.
