Univ. of Iowa Hospitals and Clinics to pay $15 million in lawsuit from nurses claiming they were not paid overtime correctly

IOWA CITY, Iowa (KCRG) – On Wednesday, a judge granted approval to a settlement that would see the University of Iowa Hospitals and Clinics (UIHC) Board of Regents pay current and former employees over the timing of their paychecks.

Before 2020, UIHC used to have a system in which employees would get their base pay for one month on the first day of the following month. Overtime and other adjustments were paid the month after that. (For example, on December 1st, an employee was paid their November salary and overtime adjustments from back in October.)

However, State law requires employers to pay wages within 12 days of the payday in which the wages were earned. Court documents show that UIHC tried to argue that documents employees signed when they were hired allowed for the timing of people’s pay to be changed.

A judge determined on March 29th, 2022 that the Hospital was in the wrong and would have to pay approximately 8,000 current and former employees over the timing of the paychecks. However, the exact figure the Hospital would have to pay wasn’t determined until Wednesday, when it was announced that UIHC and the nurses’ group proposed a class and collective action settlement that would have the hospital pay $15,000,000. The judge granted that motion.

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