Jefferson Health faces lawsuit for breaching federal regulations during recent layoffs of hundreds of employees.
A lawsuit was filed on Tuesday in Philadelphia against Jefferson Health, accusing the organization of violating federal labor regulations in relation to recent layoffs. The case arises from a decision in which the healthcare provider reduced its workforce by approximately 1%, affecting 650 out of its total 65,000 employees. This action took place in October and November without the required 60-day notification mandated by the Worker Adjustment and Retraining Notification Act (WARN Act).
The proposed lead plaintiff, Ciara Brice, claims she was terminated from her position as a medical assistant on November 12, without prior notice, and alleges that she has not received the severance pay promised by her employer. The legal representation for Brice, attorney Jeremy E. Abay from the Philadelphia law firm Pond Lehocky Giordano Inc., stated that the case seeks to hold Jefferson accountable for failing to provide appropriate notice and compensation related to the layoffs.
The WARN Act stipulates specific criteria for when advance notification is required for mass layoffs, particularly when at least 500 jobs are eliminated. According to Abay, Jefferson’s layoffs qualify as a mass termination under the act, necessitating notification to affected employees and state labor departments. Notably, despite the layoffs occurring across Jefferson’s extensive network that spans from South Jersey to Scranton, the classification as a singular entity by Jefferson necessitated compliance with the advance notification requirement.
To date, Jefferson Health filed notices of layoffs for 108 positions at its facilities in Cherry Hill, Stratford, and Washington Township in New Jersey, adhering to that state’s labor regulations. However, the legal team representing the plaintiffs maintains that the lack of formal notice for additional layoffs across other locations remains a significant violation.
Accompanying the procedural issues surrounding the layoffs, Jefferson Health recently reported a substantial operating loss of 5 million against .8 billion in revenue for the fiscal year ending June 30. The nonprofit organization has undergone considerable expansion since 2015, increasing its operational footprint from three hospitals in Philadelphia to over 30 facilities today.
The sweeping layoffs, which began in the summer of 2023, may indicate a shift in workforce strategy that has now impacted patient-facing roles for the first time. The lawsuit aims to secure back pay, benefits, and damages for all employees impacted by the lack of advance notification. Jefferson Health has not yet responded to requests for comment regarding the lawsuit or its recent layoffs.
As the situation evolves, it underscores the critical balance between organizational restructuring and compliance with labor laws, particularly in the healthcare sector where the services provided are essential to community well-being.
