Fresno’s chief lawyer eyes blocking settlement in Valley Children’s wage dispute

Fresno City Attorney Andrew Janz, who opened a wage theft probe into Valley Children’s, announced he could be exploring options to block a settlement costing nurses tens of thousands of dollars each.

Valley Children’s says a lawsuit alleging unpaid wages for on-call employees is without merit and will be disposed of, courtesy of a settlement in an other, unrelated lawsuit whittling down the hospital’s payout from millions to $400,000. 

But the Fresno City Attorney’s Office is looking to possibly take action to block the settlement. 

The backstory: In June, Valley Children’s nurse Bonnie Ferreria filed a class action lawsuit claiming the hospital owes nearly $5 million to certain employees for only paying $6 to $8 per hour for on-call shifts – which is below minimum wage. 

  • But Ferreria’s lawsuit would be done away with if a settlement is ultimately approved in another case: Briana Westfall and Gloria Garcia v. Valley Children’s Hospital. That case was filed in October 2022, claiming the hospital did not pay employees for overtime and did not provide meal and rest breaks. 
  • On June 18, shortly after the Ferreria case was filed, a settlement was proposed in the Westfall case that would pay $400,000 to all employees. 
  • Ferreria received a notice in late August saying she would receive $54.58 as part of the settlement being part of the unnamed class in the lawsuit, even though she has claimed over $27,000 in unpaid wages. 
  • Further, the settlement would release Valley Children’s from all claims from employees regarding their wages and work, nullifying Ferreria’s lawsuit even though her claims are not covered in the Westfall case. 

Valley Children’s responds: Valley Children’s released a statement Monday afternoon saying Ferreria’s claims will be dealt with under the Westfall settlement. 

  • “Although Valley Children’s Hospital strongly denies all allegations in the Westfall lawsuit, we’ve agreed to a settlement so we and our employees can focus on providing high-quality healthcare to our patients and our community, rather than on litigation,” the hospital said in a statement. “The court has preliminarily approved the settlement. A duplicate lawsuit, known as the Ferreira matter, similarly is without merit. Its potential claims will be settled under the ‘Westfall’ resolution. Valley Children’s looks forward to putting these cases behind us.” 

What we’re watching: The proposed settlement, though, is not good enough for the Fresno City Attorney’s Office. 

  • Fresno City Attorney Andrew Janz announced in June that his office is investigating a wage theft claim into Valley Children’s after Ferreria filed her lawsuit. 
  • “It is always the goal to have aggrieved employees and the employer come to a mutually agreeable resolution,” Janz said in a statement. “Unfortunately, this proposed settlement is not an outcome my office can support. Our investigation into unpaid wages will continue.” 
  • Janz also said his office is exploring intervening in the Westfall case and potentially objecting to the settlement. 
  • Ferreria has filed a motion to intervene in the Westfall case to keep the settlement from being approved. The court will hear her request on Sep. 26. 
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