LBMC workers file lawsuit

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Player told the Herald that department heads did communicate with employees after the storm, that updates were posted on Facebook and that the hospital made arrangements for some employees to work at other nearby facilities temporarily. “It was an arrangement where they would work at the hospital, but remain on our payroll and stay on our health insurance,” Player said. “In ways that we could help, we tried.”

The employees claim that since last December, there has been no attempt to inform them about the status of the hospital or their benefits. “It’s almost like the hospital is using Sandy as a reason to be able to clear all the financial problems from the past that were going on beforehand,” Berman said.

Elaine Peck, a 30-year employee, said she is owed more than 500 hours of pay for unused vacation days, more than $19,000. “And there are people who are owed more,” she said. “I went up to the administrative offices and said, ‘I’ve come to check on my money.’ She said, ‘It’s there but you can’t have it.’”

Berman said that according to the hospital’s handbook, all accrued, vested benefits that are due and payable at termination, including resignation and layoffs, will be paid. Meanwhile, he said, Doug Melzer, the hospital’s CEO, and some other administrators continue to earn over $200,000 per year.

Player said that the hospital can cover those salaries and other operating costs with revenue generated by the nursing home and other programs that have resumed.

Berman said that both current and former employees of the hospital are also named as plaintiffs in the lawsuit. He added that he hoped that any sort of bankruptcy agreement would include a settlement.

“If they file for bankruptcy … something is going to be put in place where all the creditors that are there, based on their priority, have to get satisfied,” he said. “We’re hoping that in the bankruptcy we still get compensated, instead of washing us away.”

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