Class Action Filed Against Grandison Management, Rehab Synergy Over Allegedly Unpaid Wages, Unconscionable Work Contracts [DISMISSED]
Last Updated on June 27, 2023
Zendon v. Grandison Management, Inc. et al
Filed: August 11, 2018 ◆§ 2:18cv4545
Grandison Management and Rehab Synergy PT face a lawsuit that alleges the companies falsified billing records and failed to pay mandatory overtime wages.
New York
June 27, 2023 – Grandison Management, Rehab Synergy Unpaid Wages Class Action Dismissed
The proposed class action lawsuit detailed on this page was dismissed without prejudice on February 24, 2020.
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In October 2018, Grandison Management, Inc. filed a two-page motion that pushed for the plaintiff’s claims to be handled through arbitration. Records show that United States District Judge Allyne R. Ross granted the motion in December of that year and paused all further proceedings against the two remaining defendants pending the resolution of the arbitration.
More than a year later, in January 2020, Magistrate Judge James Orenstein noted in court records that ever since Judge Ross stayed the case in 2018, the plaintiff “has done nothing to initiate arbitration proceedings and does not suggest any likelihood that she will do so in the foreseeable future.” Magistrate Judge Orenstein added that the plaintiff “likewise does not explain how she anticipates resuming the prosecution of her claims against the defendants who are not parties to an arbitration agreement.”
Court records indicate that the judge ordered the plaintiff to show cause by January 22, 2020 as to why the suit should not be dismissed, and in a status report filed on that date, the woman informed the court of her intention to “withdraw her complaint against all defendants.”
The plaintiff filed a stipulation of dismissal the following month, on February 22, 2020, and Judge Ross dismissed the case two days later.
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A proposed class and collective action has been filed in New York against Grandison Management, Inc., Rehab Synergy PT, P.C. and one individual over the alleged breach of a physical therapist’s employment contract.
The plaintiff is an individual who was recruited in the Philippines to work for the defendants under what the lawsuit says was a three-year indentured servitude contract. The first contract the plaintiff was made to sign, according to the lawsuit, stipulated that the woman would be required to pay or work off a $30,000 indenture “before she would be allowed to stop working for the defendants.” This arrangement also supposedly included non-compete provisions to prevent the woman from practicing as a physical therapist for anyone besides the defendants. The plaintiff’s second contract, which she signed in July 2017, the suit says, called for the woman to “pay $200.00 for every 40 hours left in the Work Term.”
The lawsuit decries the defendants for allegedly pressuring the plaintiff—in the country on an H-1B non-immigrant visa—to work as a physical therapist in a chiropractor’s office. During the plaintiff’s time working for the defendants, according to the complaint, the woman provided services to “an excessive number of patients” for which billing records do not accurately reflect the number of hours she worked either on or off the clock.
“On high-volume days, [the defendants] frequently required [the plaintiff] to provide physical therapy services and treatment to between 35 and 4l patients in an eight-hour day,” the suit says, claiming the plaintiff had less than 20 minutes to provide supposedly “sub-standard” services to each patient on such days.
When the plaintiff voiced her concerns about supposed risks to patients’ health and safety and the defendants’ allegedly false billing practices, the companies reportedly claimed that “it was normal for a physical therapist to treat as many as 40 patients in a day.” The lawsuit then alleges Grandison threatened the plaintiff with “serious harm and abusive legal actions” should she try to stop working for the defendants. From the complaint:
“The threats of serious harm caused [the plaintiff] to continue working for the Defendants, even though they continued to require her to treat an excessive number of patients, complete false billing records used to bill private and government health insurance programs, and did not pay her for all the hours she worked. These threats were part of a policy and practice that the Defendants pursued with respect to all foreign healthcare professionals who signed Grandison Management's standard employment contracts.”
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