Health Care Industry Pay Policies Probed By Obama Administration

In the wake of many cases wherein it was brought forth that the nurses and other staff of the hospitals and nursing homes are not paid as per the pay policies, the Obama Administration has decided to scrutinize the pay practices of the hospitals and nursing homes.

The pay policies clearly mention that all the nurses and the other employees, who work more than 40 hours a week, should be paid appropriate overtime.

Following the scrutiny by the authorities, millions of Dollars have been paid by several hospices across the country in order to settle the claims made by the employees and the Government. The payments have been vended out as back wages.

Also, to counter the same issues, numerous hospitals are in the process of fighting class-action lawsuits.

Confirming the developments, Mr. Kenneth Stripling, a Labor Department Official, who has been spearheading the enforcement efforts in Birmingham, Ala, said, “Nursing assistants, licensed practical nurses, janitors and cooks are particularly vulnerable to wage violations”.

Some of the glaring incidents of the breach of pay practices have been witnessed in St. Louis, wherein amounts in excess of $1.7 million have been recovered on account of the back wages for 4,000 employees of hospitals and clinics, which were operated by the SSM Health Care, a Roman Catholic system.

Other such cases were observed in Boston, as the Partners HealthCare System paid about $2.7 million in overtime back wages to as many as 700 employees. Further, Kaiser Permanente shelled out $7.25 million to many registered nurse coordinators, case managers and other medical workers, classified as the proposed settlement of a class-action lawsuit in California.