Univ. of Iowa Hospitals and Clinics to pay penalty in lawsuit over timing of wages

Published: Mar. 30, 2022 at 10:28 PM CDT
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CEDAR RAPIDS, Iowa (KCRG) - University of Iowa Hospitals and Clinics (UIHC) must pay a penalty to about 8,000 current and former employees after a lawsuit over the timing of paychecks.

The decision was handed down March 29. It said that, before 2020, UIHC used to have a system in which employees would get their base pay for one month on the first day of the following month. Overtime and other adjustments were paid the month after that. For example, on December 1, an employee was paid their November salary and overtime adjustments from back in October.

State law says requires employers to pay wages within 12 days of the payday in which the wages were earned.

Court documents show that UIHC tried to argue that documents employees signed when they were hired allowed for the timing of people’s pay to be changed.

As far as the amount that will be paid out, we don’t know yet. An attorney representing the plaintiffs said, “We believe liquidated damages should equal the amount of wages which were paid unlawfully late.”

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