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Group Health Reaches Agreement With U.S. Department of Labor on Timekeeping, Overtime Issues

Posted on: Saturday, 30 July 2005, 12:00 CDT

SEATTLE, July 30 /PRNewswire/ -- Group Health Cooperative announced today it has reached an agreement with the U.S. Department of Labor (DOL), resolving timekeeping and pay issues stemming from a DOL review. The review concerned work reported by some Group Health staff, but not included in payroll records -- much of it occurring before the Cooperative voluntarily improved work reporting and recording policies in 2004.

Over the past several months, using DOL-approved methodology, Group Health carefully analyzed its timekeeping practices among more than 9,000 current and former employees. Based on its assessment of the data, the Cooperative will make payments representing additional regular and overtime pay to 939 individuals.

Under terms of the agreement with the DOL, Group Health will pay a total of $1.64 million to eligible staff members. Individual payments will vary depending upon the amount of unrecorded work time reported.

"While such agreements aren't uncommon, particularly in cases involving large employers, the rules and regulations surrounding employee timekeeping are complex, and compliance with them is important," said Brenda Tolbert, VP of Human Resources. "We're very pleased that our cooperative efforts with the government have resulted in an agreement that's fair, equitable, and in compliance with legal requirements pertaining to overtime," Tolbert added.

Even before the DOL's review, Group Health had begun implementation of the Kronos timekeeping system to help simplify, automate, and standardize timekeeping and payment practices. In 2004, Group Health reinforced and clarified its timekeeping and time clock policy and procedures for all staff. The Cooperative also plans to update its new staff orientation, to include pay practices and timekeeping information for our new hires.

"Group Health is committed to compensating its valued staff fairly, competitively, and in accordance with applicable laws, regulations, and collective bargaining agreements," said Tolbert. "We'll continue to seek improvements to our systems and processes, even where a DOL review may not be involved."

Group Health Cooperative

Founded in 1947, Group Health is a consumer-governed, nonprofit health care system that coordinates care and coverage. Based in Seattle, Group Health and Group Health Options, Inc., serve more than 540,000 members in Washington and Idaho. Group Health's commercial and Medicare plans have received the top rating of "Excellent" from the National Committee for Quality Assurance (NCQA).

Group Health encompasses medical and specialty centers, hospitals (including a full-service community hospital), a nationally recognized research center, and a charitable foundation. Together Group Health and Group Health Permanente (its multi-specialty medical group) employ more than 9,000 staff.

Please visit the virtual newsroom on our Web site, http://www.ghc.org/ under "Newsroom."

Group Health Cooperative

CONTACT: Lex Reis, +1-206-448-6135, or Lee Tucker Therriault,+1-206-448-6135, or pager, +1-206-994-9288, both for Group Health Cooperative

Web site: http://www.ghc.org/

Source: PRNewswire

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