Geisinger Health, Evangelical Community Hospital “No-Poach” Lawsuit Investigation
Last Updated on March 12, 2021
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter.
Check back for any potential updates. The information on this page is for reference only.
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Case Update
- February 8, 2021 – Investigation Closed, Lawsuit Moving Forward
- Attorneys working with ClassAction.org no longer need to hear from people who worked for Geisinger Health or Evangelical Community Hospital. This is because a lawsuit has been filed and is currently making its way through the court system. For updates on the case, check back to this page or sign up to receive our free newsletter.
The information below was posted when the investigation began and exists for reference only. - February 5, 2021 – Lawsuit Filed
- A proposed class action lawsuit has been filed alleging Geisinger Health and Evangelical Community Hospital illegally agreed not to compete for each other’s nurses, doctors, therapists and other healthcare professionals. You can read the lawsuit here.
At A Glance
- This Alert Affects:
- Anyone who worked as a nurse for Geisinger Health or Evangelical Community Hospital within the last four years.
- What’s Going On?
- Attorneys working with ClassAction.org are investigating allegations made by the Department of Justice that Geisinger Health and Evangelical Community Hospital entered into an illegal agreement not to hire each other’s employees. They want to speak with current and former Geisinger and Evangelical nurses as part of their investigation to see whether a class action lawsuit can be filed.
- What’s the Harm in a No-Poach Agreement?
- No-poach agreements can suppress employees’ wages and limit their career growth.
- How Could a Class Action Help?
- A class action lawsuit, if filed and successful, could help nurses recover monetary damages for years of possible wage suppression, as well as put an end to any illegal agreements.
Attorneys working with ClassAction.org would like to hear from anyone who worked as a nurse for either Geisinger Health or Evangelical Community Hospital in Pennsylvania during the last four years.
They’re investigating allegations that the two companies entered into illegal agreements not to recruit or hire each other’s employees in a move that may have reduced nurses’ pay and limited their career growth.
If you worked for either Geisinger Health or Evangelical Community Hospital as a nurse in the last four years, it’s possible you were harmed by this alleged agreement.
What Started the Investigation?
In August 2020, the U.S. Department of Justice (DOJ) sued to prevent Geisinger Health from acquiring Evangelical Community Hospital in fears that the move would reduce the companies’ incentive to compete against each other.
As part of the lawsuit, the DOJ alleged that senior executives at Geisinger and Evangelical had already agreed not to poach each other’s employees and that this agreement “directly harms healthcare workers seeking competitive pay and working conditions.”
The lawsuit alleges that the companies even went so far as to monitor the other’s compliance with the no-poach agreement, citing an example in which the CEO of Evangelical asked her counterpart at Geisinger to stop recruiting the hospital’s nurses via Facebook as it was “very counter to what we are trying to accomplish.” The Geisinger executive allegedly forwarded the message to the company’s Vice President of Talent Acquisition asking her “to stop this activity.”
How Are No-Poach Agreements Harmful?
If two or more employers conspire not to hire each other’s workers, they are essentially agreeing not to compete for those employees’ labor. As a result, workers can be deprived of new job opportunities and career growth, fair market wages at their current positions, and the ability to obtain offers for better pay, which could be used to negotiate higher salaries with their current employers.
The alleged no-poach agreement between Geisinger and Evangelical is particularly harmful, as nurses looking for better pay or positions will likely look to the other facility as their main alternative for a change in employment due to their close proximity.
How Can a Lawsuit Help?
A lawsuit, if filed and successful, could help nurses recover money for years of possible wage suppression. It could also help put an end to any illegal agreements between Geisinger and Evangelical and restore competition in the job market.
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