A federal court in New Mexico recently certified a case as a collective action in which the plaintiff alleged that a hospital center in Las Cruces, New Mexico violated state and federal labor laws.  The Court addressed the plaintiff’s motion for conditional certification and issuance of notice under the Fair Labor Standards Act (FLSA) and New Mexico Minimum Wage Act (NMMWA). A former respiratory therapist at Las Cruces Medical Center (MVRMC), claimed that the Defendants, CHSPSC, LLC and MVRMC, employed him and other non-exempt patient care workers under conditions that violated labor laws. He alleged three main issues:

1. Meal Period Deductions: Defendants deducted a thirty-minute meal break from work hours without ensuring workers were fully relieved during that time, and they discouraged reporting incomplete breaks.
2. Time-Rounding Policy: There was an automatic rounding of recorded work time, particularly through a practice referred to as the “7-minute rule,” which resulted in workers being underpaid by having their time rounded down.
3. Underpayment Issues: The payroll system often failed to account for shift differentials, COVID pay, and other bonuses, leading to underpayment of workers.

The plaintiff sought to certify a class of current and former hourly-paid patient care workers at MVRMC who were affected by these practices between April 19, 2020, and a date 60 days from the notice mailing. The Court partially granted the motion, allowing conditional class certification and authorizing notice to the class members, which was distributed via various methods and posted at MVRMC.

The court made several key holdings in the case involving Mountain View Regional Medical Center (MVRMC) and the plaintiff’s claims regarding Fair Labor Standards Act (FLSA) violations:

1. Automatic Meal Deduction: The court found that the plaintiff’s allegations about MVRMC automatically deducting meal breaks without ensuring they were uninterrupted warranted further examination. It could not dismiss claims about employees being pressured to remain on duty during these breaks.
2. Time-Rounding Practices: The court determined that the plaintiff had presented sufficient claims regarding MVRMC’s time-rounding practices, which might disadvantage employees by benefiting the employer.
3. Overtime Pay Calculation: The court noted that the plaintiff’s argument regarding MVRMC’s failure to include various forms of compensation in overtime calculations presented valid concerns under the FLSA.
4. Conditional Certification for CHSPSC: The court agreed to include CHSPSC in the conditional certification, finding that the plaintiff provided enough evidence to suggest CHSPSC had some control over employment practices at MVRMC.

The court authorized the sending of notices and opt-in forms to potential class members in the FLSA collective action. While MVRMC raised several objections to the proposed notice, the court approved it with some modifications.

This case highlights the growing trend of hospitals and medical centers being sued for time-rounding and automatic meal break deductions.  Dozens of such suits have been filed across the country over the past few years.  If you are a nurse or medical provider and you are subject to meal break deductions or time-rounding, speak with an experienced unpaid overtime attorney as soon as possible to learn of your legal rights.  

Josh Borsellino is a Texas-licensed attorney that has represented hundreds of workers on claims for unpaid wages and fights to protect their legal rights.  For a free, confidential, no-obligation consultation, email Josh here or call him at 817.908.9861.