Class Action OT Suits in Healthcare Staffing and Trucking – What to Know

trucking.jpgBelow is linked a joint statement from the parties in one of the OT suits circulating in the healthcare staffing industry. It contains both side’s opinion as to what disclosures should be required for participants in the class action.

Note the issue raised by the defendant that the participants in class action suits COULD  be subject to more tax than they would benefit should the plaintiffs prevail. Specifically, if the per diems are allowed to be included in the OT base, the per diems could be taxable should the IRS seek to pursue that determination.

Those “back taxes” would potentially be more than the additional amount of pay gained from the extra OT.



  1. So what are the tax implications here? Are they saying that if we opt into this class action that ALL of the per diem would be retroactively taxable and they would send adjusted statements to the IRS? I just got the class action letter today and I’m not sure how to proceed because NONE OF THIS was included in the class action notice at all. The only wording regarding taxes are as follows: “You may also wish to consult a tax professional about any potential tax implications of the lawsuit”


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