Federal Judge Backs Travel Nurses in Overtime Pay Case Against Major Staffing Agency

Travel nurses recently advanced a significant legal case regarding pay practices at Aya Healthcare, one of the largest staffing agencies in the country. A federal judge in California granted class certification for certain claims in a lawsuit challenging Aya’s calculation of overtime pay for travel nurses who worked beyond the standard 8 hours per day or 40 hours per week. This move allows affected nurses to pursue these claims together, rather than individually, which may help level the playing field in the legal process.

What Is the Lawsuit About?

The lawsuit centers on Aya Healthcare’s “blended rate” pay system, which nurses allege did not properly calculate overtime by excluding certain compensation (such as stipends and bonuses) from the regular rate. Under California law, travel nurses are entitled to time-and-a-half pay for hours worked over 8 in a day or 40 in a week, with double time for hours exceeding 12 in a single day. These protections apply to nurses on California assignments regardless of where they reside.

The federal judge certified two classes of nurses who worked for Aya in California since January 2019, allowing the case to proceed on claims under California law. Claims based on federal wage law (FLSA) were not certified for class treatment, but state-specific allegations remain active.

Why Is Overtime Pay So Important?

Many nurses regularly work long shifts, including overtime, and ensuring proper compensation is essential. For travel nurses whose pay packages often include housing and meal stipends, bonuses, and varied hourly rates, understanding how overtime is calculated is particularly important. Miscalculations can result in substantial lost wages for nurses, especially given the prevalence of staffing issues and extended shift work.

Lessons for Travel Nurses

Aya Healthcare is not the only agency facing scrutiny. Other companies, such as Cross Country Healthcare, have settled similar suits over overtime pay practices in recent years. Nurses are encouraged to monitor their worked hours, understand pay package details, retain all relevant documentation, and seek clarification from recruiters or legal advisors when unsure about pay.

Here are steps nurses can take:

• Track all worked hours independently
• Review contracts and pay stubs carefully
• Keep records of communications regarding pay
• Ask questions if pay calculations don’t add up
• Consult reputable sources or labor attorneys as needed

What Happens Next?

Aya Healthcare has denied wrongdoing and maintains that its pay practices comply with applicable law. The class certification does not guarantee a win for nurses, but it increases the potential for case resolution and possible greater industry transparency. As the travel nursing sector grows, this lawsuit may shape future pay practices and benefit nurses nationwide.

Travel nursing continues to offer rewarding opportunities, but it’s essential for nurses to stay informed about workplace rights and to advocate for fair compensation. Accurate, timely pay for every hour worked supports not only financial stability but also professional respect within the healthcare system.

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