ATLANTA – A former Emory Healthcare finance employee has filed a proposed class action lawsuit alleging the Atlanta-based hospital system illegally laid off hundreds of workers without advance notice, The Atlanta Journal-Constitution reports.
PREVIOUS STORY: Emory Healthcare laying off financial services employees
What they’re saying:
The complaint — filed Friday in U.S. District Court for the Northern District of Georgia — accuses Emory Healthcare of violating the federal Worker Adjustment and Retraining Notification (WARN) Act by terminating 543 full-time employees from its finance department last week without the required 60 days’ notice.
Lead plaintiff Paulette Simmons claims she was among the employees abruptly dismissed on Aug. 12 and offered a severance package that fell short of what the WARN Act mandates. Her lawsuit seeks 60 days’ worth of back pay and benefits for each affected worker.
Emory Healthcare, which is affiliated with Emory University, operates 11 hospitals and more than 500 other clinical locations across Georgia. According to Simmons’ lawsuit, the severance letters issued last week offered lump-sum payments only if employees agreed not to pursue legal action — a condition she argues violates the WARN Act’s guarantees.
The other side:
In a statement to the newspaper, an Emory Healthcare spokesperson said the decision to eliminate finance positions was “difficult” but affects less than 1% of its approximately 27,000-person metro Atlanta workforce. The spokesperson added that some employees were reassigned to other finance roles and that departing staff are receiving support during the transition.
Copy of internal email sent to employees below:
Update on Revenue Cycle Restructuring
This email is sent on behalf of Joon S. Lee, MD, CEO of EHC and Executive Vice President for Health Affairs of EU
Dear Colleagues, I recognize the importance of keeping our team members informed, especially when organizational decisions draw public attention. You may have seen recent media coverage referencing a lawsuit concerning a reduction in force (RIF) in Revenue Cycle. These reports included some inaccuracies that we are actively working to correct. In the meantime, I want to provide you with an update on the decision to restructure the financial services team, which was driven by the need to simplify and to establish clearer lines of ownership and accountability for resolving accounts in a timely manner.
On Aug. 12, a restructuring was announced in the Revenue Cycle department for some of our professional coding positions that would now be managed externally. This reduction affected 232 employees and represents less than 1% of our total workforce of approximately 29,500 employees.
I want to acknowledge that these are significant decisions that must be carefully approached, and while these decisions are never easy, they are necessary to ensure we remain agile and responsive to the evolving health care landscape.
Thank you for your dedication to Emory Healthcare and for your resilience as we continue to evolve as an organization. Please reach out to your leader or Human Resources if you have questions or concerns.
What’s next:
The case seeks class-action status on behalf of the more than 500 laid-off workers.