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About THE LAWSUIT

CASE BACKGROUND

On April 27, 2017, a proposed class action lawsuit was filed against U.S. Healthworks, Inc. and U.S. Healthworks Holding Company, Inc. ("USHW") in the San Diego Superior Court by a former employees, as well as a current employee (the “Class Representatives”) on behalf of the proposed Class of fellow non-exempt (non-management) employees who, at any time during the period of April 27, 2013 to the present , worked at one or more of the USHW facilities operated in California (the “proposed Class”). (Keich, et al. v. US Healthworks, Inc. , et al., S.D. Case No.: 37-2017-00015343-CU-OE-CTL; the "Keich Action")

On October 17, 2017, a second proposed class action was filed against USHW and U.S. Healthworks Medical Group, PC - this one in the L.A. Superior Court, by another former employee, asserting similar claims of labor law violations against said employers. (Bhusan v. U.S. Healthworks, Inc. et al., L.A. Case No. BC679728; "Bhusan Action")

On November 2, 2017, a third proposed class action lawsuit was filed against USHW, Dignity Health, et al., also in the L.A. Superior Court, by another former employee, asserting similar claims of labor law violations against said employers. (Hwang v. USHW, et al., L.A. Case No. BC682528; "Hwang Action")

On June 4, 2019, an Amended Consolidated Complaint was filed in the San Diego Superior Court, effectively consolidating the Keich Action, Bhusan Action, and Hwang Action for all purposes, including certification efforts and trial. Concentra Health Services, Inc., and Select Employment Services, Inc. were added as Defendant employers to the case. (the "Consolidated Action"; S.D. Case No.: 37-2017-00015343-CU-OE-CTL (Lead Case)

In the Consolidated Action, the Class Representatives allege, among other things, that USHW-Concentra did not permit employees to take their statutorily entitled rest breaks, did not provide lawful meal breaks, impermissibly utilized an on-duty meal period agreement to compel the employees to remain on duty during their earned meal period, failed to pay wages for all hours worked, failed to pay all earned overtime, failed to timely pay the earned wages, failed to provide lawful wage statements (pay-stubs), distributed wage statements which did not accurately identify the employees actual employer, and failed to pay all earned wages when the employee's employment with USHW-Concentra was terminated. Further, it is alleged that Defendants' violations of California labor law warrant the imposition of penalties against the employers pursuant to the Private Attorney General Act (PAGA).

U.S. HEALTHWORKS-CONCENTRA'S ALLEGED VIOLATIONS OF CALIFORNIA LABOR LAWS

In the lawsuit, the Class Representatives allege that U.S. Healthworks, Concentra, Select Employment Services, Inc. (collectively USHW-Concentra) committed unlawful business practices in the State of California by:

1. Not paying the proposed class members all of their earned wages and overtime wages (by not recording all time worked, etc.)

2. Not paying all earned overtime for shifts worked in excess of 8 hours in a day or 40 hours in seven-day period);

3. Not timely paying all earned wages

4. Not timely paying all earned wages and compensation when the worker's employment ended;

5. Not providing accurate and lawful wage statements. The paystubs failed to document all hours work and failed to identify the true employer of the class members

6. Not authorizing and permitting paid 10 consecutive minute uninterrupted rest period for shifts worked in excess of 3.5 hours or a second rest period for shifts in excess of 6 hours;

7. Not providing 30 consecutive minute uninterrupted meal periods for shifts worked in excess of 5 hours or a second meal period for shifts in excess of 10 hours. USHW and Concentra used impermissible on-duty meal period agreements to compel the class members to remain on duty during their earned meal period.

8. Engaging in unfair business practices

Further, it is alleged that USHW-Concentra's violations of California labor law warrant the imposition of penalties against the employers pursuant to the Private Attorney General Act.

Through the lawsuit, the proposed Class Representatives are trying to recover all unpaid wages, statutory penalties, civil penalties, liquidated damages, interest, costs, and attorney’s fees, from USHW-Concentra on behalf of all of the non-exempt (non-management) employees who worked at one or more of Defendants' medical facilities in California at any time during the period of April 27, 2013 to the present. Moreover, through the lawsuit, the Class Representatives are seeking an injunction to prevent USHW-Concentra from continuing to commit their alleged violations of California labor law.

case updates

The Court Certified the US Healthworks-Concentra Employees' Lawsuit to Proceed On a Class-Wide Basis

On April 30, 2021, San Diego Superior Court Judge Eddie Sturgeon GRANTED the Motion for Class Certification advanced on behalf of US Healthworks-Concentra's former and current employees (the "Class".

In its ruling, the Court made the following factual and legal findings: (1) That the proposed class is numerous and ascertainable; (2) The proposed class members have an adequate community of interest to warrant prosecution as a class action; (3) The claims of the class representative plaintiffs are typical of the claims of the other class members; (4) To the extent additionally class members may be required, that may be resolved at a different time; (5) Both the representative plaintiffs and their counsel are "adequate" for purposes of class certification; (6) A class action trial would be manageable; and (7) There are factual and legal issues that are common each specified class, sufficient in importance so that their adjudication on a class basis is a superior means of proceeding in this instance both for the litigants and the court.

Accordingly, the Court has certified the following Class and Sub-Classes to pursue their claims against US Healthworks and Concentra on a class-wide basis:

Rest Period Class: all current and former non-exempt employees of U.S. Healthworks, Inc.

(USHW) and/or Concentra Health Services, Inc. ("Concentra") in California who worked at least one shift in excess of 3.5 hours at any point from April 27, 2013 until April 1, 2019. Plaintiffs have provided a) a training module for USHW managers from May 2014 which informed managers that employees were not permitted to leave company premises during rest periods; and (b) declarations from 20 employees who worked prior to August 2017 who confirm that in instances when they did have an opportunity to take a rest period, they were not permitted to leave the premises. None of the declarations submitted by defendants state anything to the contrary.

On-Duty Meal Period Agreement Class: all former non-exempt employees of USHW in California whose time records indicate that an on-duty meal period agreement was enforced to override the payment of meal period premiums at any point from April 27, 2013, to May 18, 2018. Plaintiffs have established defendants may have a pattern or practice of requiring its employees to remain on-duty during meal breaks.

The Subclass On-Duty Meal Period Class is ascertainable as it is limited to only those individuals whose time records indicate that an on-duty meal period agreement was actually enforced to override the payment of a meal period premium during the relevant time period.

USHW's use of on-duty meal period agreements appears to have been discontinued shortly after its acquisition by Concentra, according to plaintiffs. Thus, the class period ends in 2018.

On-Call Class: all current and former non-exempt employees of U.S. Healthworks, Inc. ("USHW") and/or Concentra in California who received wages for on-call shifts that were coded on their wage statements as "On Call" without any corresponding rate or number of hours listed, at any point from April 27, 2013 to the present.

Wage Statement Class I (U.S. Healthworks): all former employees of U.S. Healthworks, Inc. in California who received a wage statement that listed the employer's name as "U.S. Healthworks Holding Company, Inc." at any point from April 27, 2016 to the present.

Wage Statement Class II (Concentra): all current and former employees of Concentra Health Services, Inc. in California who received a wage statement that listed the employer's name as "Select Employment Services, Inc." at any point from May 18, 2018 to the present.

Whether defendants' wage statements list the correct name of the legal entity and whether a reasonable person could "readily ascertain...without reference to other documents or information" is an appropriate area for class certification in compliance with Labor Code § 226(a)(8).

Waiting Time Penalty Class: all members of the Rest Period Class, On-Duty Meal Period

Agreement Class, and/or On-Call Class who have separated their employment since April 27, 2014.

Finally, as to whether defendants are liable for waiting time penalties as a result of their willful failure to pay all unpaid overtime wages is an appropriate subject for class certification.

Attorneys Approved to Represent USHW-Concentra Employees

SCHONBRUN SEPLOW HARRIS HOFFMAN & ZELDES, LLP

Helen Zeldes, Ben Travis,

Aidan C. McGlaze, Michael D. Seplow

11543 W. Olympic Blvd., Los Angeles, CA 90064

Tel: (310) 396-0731 | Fax: (310) 399-7040

mseplow@sshhlaw.com, amcglaze@sshhlaw.com,

hzeldes@sshhlaw.com, btravis@sshhlaw.com

HAINES LAW GROUP, APC

Paul K. Haines, Fletcher W. Schmidt,

222 N. Sepulveda Blvd., Suite 1550, El Segundo, CA 90245

Tel: (424) 292-2350 | Fax: (424) 292-2355

phaines@haineslawgroup.com, fschmidt@haineslawgroup.com

HATHAWAY, PERETT, WEBSTER, POWERS, CHRISMAN & GUTIERREZ, PC

Alejandro P. Gutierrez

5450 Telegraph Road, Suite 200, Ventura, CA 93003

Tel: (805) 644-7111 | Fax: (805) 644-8296

agutierrez@hathawaylawfirm.com

LAW OFFICE OF ROBERT W. SKRIPKO, JR., PC

Robert W. Skripko, Jr.

38 Corporate Park, Irvine, CA 92606

Tel: (949) 476-2000 | Fax: (949) 476-2007

rwskripko@skripkolaw.com

the law

CALIFORNIA LAW REQUIRES USHW-CONCENTRA TO ALLOW YOU TO TAKE AN UNINTERRUPTED PAID TEN CONSECUTIVE MINUTE REST PERIOD WHEN YOU WORK MORE THAN 3.5 HOURS IN A SHIFT. YOU GET A SECOND REST PERIOD IF YOU WORK MORE THAN 6 HOURS, AND A THIRD 10 MINUTE REST PERIOD IF YOU WORK MORE THAN 10 HOURS. REST PERIOD: (A) Every employer shall authorize and permit all employees to take rest periods, which insofar as practicable shall be in the middle of each work period. The authorized rest period time shall be based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hours or major fraction thereof. However, a rest period need not be authorized for employees whose total daily work time is less than three and one-half (3 ½) hours. Authorized rest period time shall be counted as hours worked for which there shall be no deduction from wages. (B) If an employer fails to provide an employee a rest period in accordance with the applicable provisions of this Order, the employer shall pay the employee one (1) hour of pay at the employee's regular rate of compensation for each work day that the rest period is not provided.

CALIFORNIA LAW REQUIRES USHW-CONCENTRA TO PROVIDE YOU A THIRTY CONSECUTIVE MINUTE, UNINTERRUPTED MEAL PERIOD WHEN YOU WORK MORE THAN 5 HOURS IN A SHIFT. THEY CANNOT ASK YOU TO WAIVE THIS RIGHT, ALTHOUGH YOU HAVE THE RIGHT TO WAIVE THE MEAL PERIOD IF YOU WORK NO MORE THAN 6 HOURS IN YOUR SHIFT. YOU ARE ENTITLED TO A SECOND THIRTY MINUTE UNINTERRUPTED MEAL PERIOD WHEN YOU WORK MORE THAN 10 HOURS IN A SHIFT. MEAL PERIOD: No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than thirty (30) minutes, except that when a work period of not more than six (6) hours will complete the day's work the meal period may be waived by mutual consent of the employer and employee. Unless the employee is relieved of all duty during a thirty (30) minute meal period, the meal period shall be considered an "on duty" meal period and counted as time worked. An "on duty" meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time. (B) If an employer fails to provide an employee a meal period in accordance with the applicable provisions of this Order, the employer shall pay the employee one (1) hour of pay at the employee's regular rate of compensation for each work day that the meal period is not provided.

CALIFORNIA LAW REQUIRES USHW-CONCENTRA TO PAY YOU 1 AND 1/2 TIMES YOUR REGULAR RATE OF PAY FOR EACH SHIFT YOU WORK IN EXCESS OF 8 HOURS IN A GIVEN DAY OR 40 HOURS IN A GIVEN WEEK. FURTHER, U.S. HEALTHWORKS IS REQUIRED TO PAY YOU TWICE YOUR REGULAR RATE OF PAY FOR EACH SHIFT YOU WORK IN EXCESS OF 12 HOURS IN A GIVEN DAY OR IN EXCESS OF 8 HOURS ON A SEVENTH CONSECUTIVE DAY OF WORK. OVERTIME: LC 510. (a) Eight hours of labor constitutes a day's work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee. In addition, any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee.

CALIFORNIA LAW REQUIRES USHW-CONCENTRA TO PAY ITS EMPLOYEES ALL OF THEIR EARNED WAGES ON THE DAY THEY ARE DISCHARGED OR, IF THE EMPLOYEE QUITS, WITHIN 72 HOURS. LAST PAYCHECK: LC 201. (a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. LC 202. (a) If an employee not having a written contract for a definite period quits his or her employment, his or her wages shall become due and payable not later than 72 hours thereafter, unless the employee has given 72 hours previous notice of his or her intention to quit, in which case the employee is entitled to his or her wages at the time of quitting. LC 203. If an employer willfully fails to pay, without abatement or reduction, in accordance with Sections 201, 201.5, 202, and 205.5, any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced; but the wages shall not continue for more than 30 days.

CALIFORNIA LAW REQUIRES USHW-CONCENTRA TO PROVIDE ITS EMPLOYEES ACCURATE WAGES STATEMENTS WHICH PROVIDE THE STATUTORILY REQUIRED INFORMATION. WAGE STATEMENT: LC 226. (a) Every employer shall, semimonthly or at the time of each payment of wages, furnish each of his or her employees, either as a detachable part of the check, draft, or voucher paying the employee's wages, or separately when wages are paid by personal check or cash, an accurate itemized statement in writing showing (1) gross wages earned, (2) total hours worked by the employee, except for any employee whose compensation is solely based on a salary and who is exempt from payment of overtime under subdivision (a) of Section 515 or any applicable order of the Industrial Welfare Commission ... (4) all deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item, (5) net wages earned, (6) the inclusive dates of the period for which the employee is paid, (7) the name of the employee... (8) the name and address of the legal entity that is the employee...and (9) all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee. The deductions made from payments of wages shall be recorded in ink or other indelible form, properly dated, showing the month, day, and year, and a copy of the statement or a record of the deductions shall be kept on file by the employer for at least three years at the place of employment or at a central location within the State of California. (e) An employee suffering injury as a result of a knowing and intentional failure by an employer to comply with subdivision (a) is entitled to recover the greater of all actual damages or fifty dollars ($50) for the initial pay period in which a violation occurs and one hundred dollars ($100) per employee for each violation in a subsequent pay period, not exceeding an aggregate penalty of four thousand dollars ($4,000), and is entitled to an award of costs and reasonable attorney's fees