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University of Iowa Hospitals & Clinics will pay $15 million to workers as part of a class-action suit that was filed in 2019

DES MOINES, Iowa — According to documents filed on Friday, University of Iowa Hospitals & Clinics employees who claim they were improperly awarded overtime and other compensation will earn $15 million as part of a class-action lawsuit launched in 2019.

The healthcare institution and approximately 11,000 employees have alleged that supervisors failed to pay overtime, bonuses, and earned leave in accordance with state and federal law.

Attorneys for the employees estimated that the settlement amount could have reached $64 million. The Des Moines Register said that they were concerned that a higher court may have cut the amount to as little as $11 million after lawyers for the Iowa Board of Regents threatened to appeal a judge’s finding for partial summary judgment.

On the basis of this possibility, counsel for the class members stated in settlement filings that they “think they have gotten an excellent result.”

Each of the six employees who lead the legal action will get $10,000. The remaining workers will each receive a portion of the remaining $11.6 million based on the number of allegedly unlawful payments they received from the hospital. The attorneys will receive $3.4 million.

A Board of Regents representative did not immediately respond to an email requesting comment.

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