In the case of Mitcham v. Intrepid USA, Inc., Tina Mitcham filed a lawsuit on behalf of herself and similarly situated individuals against Intrepid USA and F.C. of Kentucky, who were conducting business as Intrepid USA Healthcare Services (Intrepid). Mitcham and the other individuals were non-exempt home health workers employed by Intrepid at any of their Kentucky locations. They were responsible for providing in-home healthcare services to patients.
Mitcham alleged that their pay was computed on a fee-per-visit basis and that they were not properly compensated for all their work, including compensable travel time and other unrecorded work time, such as time spent charting for patients outside of their in-home visits.
A settlement agreement was reached between the employees and Intrepid that resolved the claims. The agreement provided for an aggregated gross amount of $23,000 paid to the complainants. The amount was based on a determination of overtime compensation, including the alleged unrecorded compensable travel time and other unrecorded work time. The settlement also included an amount of $142,500 in attorney’s fees and expenses. In exchange for the payments, Mitcham and the other employees were to release Intrepid from their unpaid wage claims.
The court concluded that the settlement agreement was fair and reasonable. The court approved the settlement but wanted to address the attorney’s fees amount separately. The final ruling on attorney’s fees is undetermined.
Key lessons from this case:
- Lawsuits can be filed on behalf of individuals and similarly situated individuals who believe they are owed unpaid overtime pay under the FLSA and state laws.
- Settlement agreements often involve a release of claims, where an employee may agree to release an employer from further liability while also receiving overtime back wages and additional damages in return.
- Overtime compensation calculations for home healthcare service providers may not be so straightforward as patients may need additional care outside of working hours.
If you want to know more about overtime regulations, read our guide on Kentucky Overtime Laws.
