The Indiana Supreme Court heard arguments last week in a case that disputes whether employers should have to pay damages to workers for withholding a portion of their wages.
St. Vincent Hospital has challenged lower court rulings that awarded triple damages to Dr. Robert Steele of Kokomo in the amount of $881,439, including attorney fees.
Steele alleged the hospital violated his employment contract and shorted him $280,000 over three years. The hospital argued that changes in federal Medicaid and Medicare rules required it in good faith to withhold a portion of Steele’s pay.
The hospital did not challenge lower court rulings that it underpaid Steele. Instead, it challenged the awarding of triple damages.
The hospital said Steele sued it under a section of the law that provides additional damages and attorney fees only if an employer fails to pay wages in a timely fashion–not if the amount of the wages are in dispute.
Several organized labor representatives said they expect to follow the case closely.
“The employee may miss a house payment without that paycheck, so why shouldn’t the employer be made to pay for that misery?” said Bill Groth, an attorney representing thousands of union workers for the Indiana State Building and Construction Trades Council.
———-
More Top Picks Canes Raspberrys