Forced to Work Through Lunch? 786 Nurses Demand $575K Settlement Over Unpaid Breaks
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786 nurses say they weren’t paid for time worked through breaks, citing automatic 30-minute deductions even when no break was taken.
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Monarch Healthcare Management has agreed to a $575,000 settlement to resolve the wage claims without admitting wrongdoing.
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The collective includes nurses who worked between August 2018 and February 2022 and were subject to meal break deductions.
Monarch Healthcare Management LLC and a group of 786 current and former nurses have asked a Minnesota federal court to approve a $575,000 settlement resolving claims of unpaid wages under the Fair Labor Standards Act (FLSA).
Lead plaintiff April Quay filed the suit in August 2021, alleging Monarch violated federal and state wage laws by automatically deducting 30-minute meal breaks from time records — even when nurses were unable to take an uninterrupted break due to patient care responsibilities.
Monarch denies the allegations and maintains it complied with all wage laws. The proposed settlement would resolve the dispute without further litigation.
Who’s Covered by the Proposed Deal?
In August 2023, the court certified a collective of:
All non-exempt nurses who were subject to an automatic meal period deduction while working for Monarch Healthcare Management LLC in the U.S. between August 5, 2018, and February 14, 2022.
A total of 786 individuals opted in to join the lawsuit after receiving notice.
Settlement Details
Under the terms of the agreement:
- Gross settlement amount: $575,000
- Service award to lead plaintiff Quay: $5,000
- Attorneys’ fees: $195,000 (approximately 33.9% of the total)
- Litigation costs: Up to $50,000
- Settlement administrator: ILYM Group, Inc.
- Distribution timeline: Within 30 days of court approval
Each participant’s payout will be proportional to their number of workweeks during the claim period.
Dispute Centered on Break-Time Deductions
The lawsuit claimed nurses were not properly compensated for all hours worked, especially when required to work during unpaid meal periods. Quay alleged that Monarch knew or should have known that nurses were frequently unable to take their full breaks.
Monarch disputed those claims, stating that employees were instructed to use a reversal form if they missed a break so they could be paid for the time.
Despite the disagreement, both parties agree the settlement is fair and reasonable given the complexity and cost of continuing litigation.
What Happens Next?
If the court approves the settlement, the third-party administrator, ILYM Group, Inc., will send settlement checks and tax forms to the nurses who joined the case. Each nurse will have 60 days to cash or deposit their check.
In exchange for receiving payment, collective members will release any wage-related claims tied to the allegations in the lawsuit. April Quay, the lead plaintiff, has agreed to a broader general release in return for a $5,000 service award.
The case is Quay v. Monarch Healthcare Management LLC, case number 0:21-cv-01796, in the U.S. District Court for the District of Minnesota.
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