Political Action Center

Albany/Troy/Schenectady- 3,277 registered nurses have begun receiving settlement payouts averaging $1,730 related to a class action lawsuit alleging that five area hospitals violated federal antitrust laws by conspiring to suppress nurse wages. 1199SEIU, the largest healthcare union in New York State and the nation, along with the SEIU Nurse Alliance, helped conduct the original research, which laid the foundation for the suit; the SEIU Nurse Alliance also supported the plaintiffs and the litigation throughout the process. The settlement of the lawsuit was significant because studies have shown that the nurse shortage is due in part to wage suppression by employers, and that short-staffing has a negative impact on quality of care.

“These settlement payouts are a victory for registered nurses and for patients,” said Norma Amsterdam, a registered nurse and an Executive Vice President of 1199SEIU. “The checks will help compensate these hard-working nurses, and the settlement will have an even larger effect on the overall quality of healthcare in the area. We have helped ensure that all registered nurses are compensated fairly, and that means there will be better recruitment and retention of qualified staff, safer staffing and ultimately higher quality of care for patients.”

“Laying the foundation for this class action lawsuit was part of our role as industry watchdogs and leading patient advocates,” said George Gresham, President of 1199SEIU. “We put employers on notice that they will be held accountable to nurses, caregivers, communities and patients.”

The class action suit alleged that Albany Medical Center, Ellis Health, Northeast Health, Seton Health and St. Peter’s Health shared confidential registered nurse wage information and conspired to suppress registered nurse wages during the period of June 20, 2002 through June 20, 2006. The settlements from each employer were pooled in an escrow account, and checks from the fund began mailing out to nurses on March 29th. The Albany area class action suit was part of a national effort to address the registered nurse shortage, and similar lawsuits were launched in Detroit, Chicago, San Antonio and Memphis.

More information can be obtained at albanynurseslitigation.com

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1199SEIU United Healthcare Workers East represents nearly 20,000 registered nurses and is the largest and fastest-growing healthcare union in New York and the nation. We represent over 350,000 total members throughout Massachusetts, New York, New Jersey, Maryland, Washington, D.C. and Florida.

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