eHealth paying $7 million in class-action lawsuit

738 employees to split settlement
||Last Updated: 01/31/2013

eHealth Ontario is paying $7.16 million after settling a class-action lawsuit, according to the Toronto Star.

Hundreds of workers sued the province’s electronic health records agency for $11 million after eHealth failed to provide promised merit raises and bonuses.

In May 2011, many employees were informed they would be given merit raises up to 1.9 per cent or bonuses up to 7.8 per cent. However, scathing media reports led to the withdrawal of the offer a few days later.

Under terms of the proposed settlement, which is subject to a “fairness hearing” on March 28, 738 eligible eHealth Ontario employees will receive their performance incentive award for the fiscal year 2010-11, but no merit increase.

For 2011-12, the workers will get one-half of their performance incentive award, but no merit raises, according to the Star.

eHealth will also pay $115,000 in legal costs, though law firms in such class-action suits can be eligible for up to 30 per cent of the settlement.

Related links:

Pulling back bonuses has its perils: Experts

eHealth agency provides cautionary tale on compensation rescinded

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