Maxim Overtime Class Action Just The Latest in a String of Lawsuits

Columbia, MDThe Maxim HealthCare Services employment class action lawsuit filed by plaintiff Jasmine Lawrence is only the latest in a string of lawsuits and stormy seas in the legal waters that Maxim has been made to navigate through. In June, Maxim agreed to a $12.3 million settlement with regard to three federal class actions alleging violations to overtime statutes governed by the Fair Labor Standards Act (FLSA).

In 2011, Maxim agreed to fork over $150 million to settle charges of fraudulently overbilling governments at both the federal and state level.

The latter stemmed from a federal probe that led to the laying of a criminal conspiracy charge by the US Justice Department. According to various reports, no fewer than nine individuals have pleaded guilty of defrauding the government since 2009. Of those, three were regional account managers with the firm.

The latest action against Maxim alleges willful violation of the Ohio Minimum Fair Wage Standards Act (OMFWSA) with regard to the Maxim Healthcare Services Overtime Class Action Lawsuit. Lead plaintiff Lawrence alleges she often worked in excess of 70 hours per week performing various functions, from patient care to general housekeeping duties.

For her efforts, the plaintiff alleges, she was not paid overtime for her work beyond the standard 40-hour workweek as required under federal and state laws.

Lawrence's allegation—and those of her fellow class members—is not unlike those of plaintiffs who sought, and achieved a settlement from Maxim with regard to unpaid overtime. In the settlement that was announced June 28 of this year, Maxim was accused of incorrectly classifying recruiters as exempt from overtime pay.

The foregoing settlement was achieved through mediation and was announced in the state of California. Under the terms of the settlement, named class representatives are in line to receive $5,000 each in compensation, with the California Labor and Workforce Development Agency receiving $50,000.

In the fraud case against Maxim, whistleblower Richard W. West accused Maxim of billing the government for more than 700 hours of services that were ultimately not provided, according to the lawsuit. As part of that settlement, the state of New Jersey was to receive about $2.7 million in compensation. West, the whistleblower, was to receive a $15.4 million award.

In the Lawrence case, Maxim claims the plaintiff was employed as a Home Health Aid by the company and paid a salary and thus, in the company's view, exempt from overtime pay. Lawrence, in her Maxim HealthCare Services employment class action lawsuit, counters that while she was employed in that capacity the majority of her tasks involved general housekeeping chores.

She also alleges in her lawsuit that she and other members of the class are considered employees within the meaning of the OMFWSA and are not contractors.

The Maxim HealthCare Services employment class action lawsuit continues…