Court rules New York public hospitals exempt from state labor laws
On Oct. 16, a New York federal district court granted a partial motion to dismiss a lawsuit against the New York City Health & Hospitals Corp. The class action case was brought by HHC workers seeking back wages and overtime pay, according to Law360.
A hospital police officer filed the proposed class action on behalf of himself and coworkers who regularly worked before and after shifts and through break periods without receiving compensation, the Minority Corporate Counsel Association reported.
Under New York labor laws, individuals employed by federal, state or municipal government or a political subdivision thereof are not included in the definition of employee. The court determined that HHC is a political subdivision of New York, making it exempt from state labor law claims.
The judge allowed the man's claim for overtime settlement under the Fair Labor Standards Act to continue, but argued that imposing 100 percent liquidated damages on the hospitals would be against public interest because it would affect HHC's resources. The hospital, which is is run by public funding performs an essential function by providing treatment to the community, including individuals who lack insurance, said the District Judge.
To avoid lawsuits, all places of employment, whether privately or publicly owned should maintain proper time attendance records.
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