Laid-off staff on the now-closed Santa Cruz Valley Regional Hospital in Inexperienced Valley, Ariz., have filed a class-action lawsuit alleging they weren’t paid for accrued day without work upon termination, the Inexperienced Valley Information reported Aug. 13.
The lawsuit was filed Aug. 11 in U.S. District Court docket in Arizona on behalf of Stephanie Garrett, RN, and different staff who misplaced their jobs after the hospital closed June 30. Santa Cruz Valley Regional introduced the closure a few week after issuing a Employee Adjustment and Retraining Notification Act discover June 20, which gave hospital staff 60 days’ discover of the mass layoff.
The lawsuit, accessed by Becker’s, alleges that the hospital terminated about 300 staff July 22 on someday’s discover, though it had pledged “to maintain them employed till Aug. 20 and pay out their unused, earned paid day without work upon termination, neither of which it did.”
The lawsuit additionally alleges Ms. Garrett questioned these actions in a July 27 letter to Steven Harris, chairman of the board of the hospital, “requesting a proof for, amongst different issues, the discount of staff’ earned and obtainable PTO hours, and the failure to pay out any PTO hours upon termination.”
In accordance with the lawsuit, Ms. Garrett acquired no written reply to her letter, and now, on behalf of herself and different staff, seeks to get well 60 days’ wages and advantages, pursuant to the Employee Adjustment and Retraining Notification Act, and the unpaid wages she says they’re due below Arizona legislation.
Santa Cruz Valley Regional was owned by Lateral Funding Administration, a San Mateo, Calif.-based funding agency, and Jeremiah Foster of Resolute Business Companies was tapped to function the chief restructuring officer. Mr. Foster didn’t instantly reply to a request from Becker’s looking for remark.
Mr. Harris, who stepped down as Santa Cruz Valley Regional’s CEO July 29, however nonetheless heads the hospital board, informed the Inexperienced Valley Information in July that the Employee Adjustment and Retraining Notification Act is open to interpretation.
“The legal professionals have recognized that there are some provisions round monetary hardship which will relieve us from a few of that duty,” he informed the newspaper. “However we really feel an ethical duty, if not a obligation, to staff.”
Santa Cruz Valley Regional issued the layoff discover after Tucson, Ariz.-based TMC Well being canceled its bid to purchase the hospital.
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