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St. John Hospital and Medical Center Sued for Age Discrimination

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Nine employees have filed suit against Detroit’s St. John Hospital and Medical Center for tossing a program that would pay employees for his or her unused sick days upon retirement or resignation. The employees stand to lose $2,700 to $11,000 in promised benefits. However, lawyers are requesting the suit be certified as a class action, since the decision affects over 430 hourly employees. Along with age discrimination, the suit alleges breach of contract and other benefit violations.

The program was dropped on January 1, 2009, and is expected to save the hospital $1.5 million. According to the Detroit Free Press, the hospital made $1.3 million in the 2008 fiscal year, but in the first 6 months of the 2009 fiscal year, it has already lost $106 million.

In a statement released to the Detroit Free Press, the health system noted the "difficult cost savings decision" was necessary "save as many jobs as possible."