Kaiser Healthcare $11.5M Class Action Settlement Over Race Discrimination

Following allegations in a class action lawsuit that Kaiser Healthcare discriminated against employees of color, the company agreed to pay more than $11.5 million in a settlement to resolve the Racial matter. 

Settlement Overview

The Kaiser Racial Discrimination Settlement applies to current and former Black or African-American California employees who worked in a covered position for the Kaiser-Related Entities between January 1, 2015, and March 31, 2021.

The Kaiser-Related Entities are:

• Kaiser Foundation Health Plan Inc. (KFHP)
• Kaiser Foundation Hospitals (KFH)
• The Permanente Medical Group Inc. (TPMG), and
• Southern California Permanente Medical Group (SCPMG)

Full-time, occupied, exempt or non-exempt, non-union, non-clinical, director-level, or below administrative support or consulting, services positions are included. 

Even if all other criteria are met, intern or temporary student positions in these job families are excluded in the Settlement.

Kaiser discrimination includes monetary and non-monetary relief. Some non-monetary relief includes the following:

• A job analysis done by an independent expert
• An independent expert conducts an annual equity review of base pay, incentive pay, and compensation increases
• An independent human resources expert conducts an assessment of leadership development and diversity programs
• Changes made in response to expert reviews

While only current employees will receive non-monetary relief, both former and current employees may be eligible to receive payments from the Settlement. 

The Kaiser Racial Discrimination Settlement’s cash payments are computed based on the salaries of Class Members, their exemption status, and the number of weeks worked throughout the Class Period. This information is sourced from Kaiser’s payroll records.

Class Members who claim they were denied a promotion due to their race may be eligible for higher payments. Claimants must submit an enhanced claim form in order to receive a 10% payment enhancement based on denied promotions.

Members of the class may contact the settlement administrator to obtain an estimated payment amount. Any settlement benefits received will have no effect on current employees’ benefit plans.

Claimants Legal Rights and Options

Class Members who wish to do the following must do so by January 22, 2022;

• Do Nothing — Stay in this Lawsuit and automatically receive money allocated under the Settlement. Receive no enhancement.
• Submit an Enhancement Claim Form — Remain a participant to this Lawsuit and automatically receive money for a Pay Claim Award allotted under the Settlement, enhanced by 10% if you are determined to be qualified for a Promotion Claim Award depending on your Enhancement Claim Form.
• Request to be Excluded — Submit a request to be excluded from the Settlement’s monetary relief provisions. You will not receive any funds from the Settlement. Maintain any rights you may have to file a lawsuit on your own behalf for the same claims.
• Unless you remove yourself from the Kaiser Racial Discrimination Settlement, you have the right to file an objection alleging that it is unfair or inadequate.

Shelby Stewart, et al. v. Kaiser Foundation Health Plan Inc. et al.

Various Kaiser entities are accused of discriminating against their colored employees by refusing them equal pay, bonuses, other forms of compensation, and promotions. In addition, employees of color were discriminated against more frequently than their white counterparts through demotions and other disciplinary actions.

After two years of negotiations, Kaiser agreed to an $11,504,759 settlement but denied any wrongdoing.

Editor’s Note on Kaiser Racial Discrimination Settlement For $11.5 Million:

This article is written to inform you of the Kaiser Healthcare $11.5M settlement to resolve claims that it allegedly discriminated against its employees of color. A similar settlement was also reached by Edward Jones. 

Case Name & No.: Shelby Stewart, et al. v. Kaiser Foundation Health Plan Inc., et al., Case No. CGC-21-590966

Jurisdiction: Superior Court of the State of California, San Francisco County

Allegations: Kaiser was involved in racial discrimination.

Have you been discriminated against in your work before? Tell us by clicking the “Contact Us” button below!

Contact Us

You can also reach out to us on Twitter or Facebook or via email at Outreach@ConsiderTheConsumer.com. Also, directly on our website! We look forward to hearing from you.