You received the notice because Washington’s Department of Social and Health Services (DSHS) records showed that you are or were an Individual Provider (IP) who contracted with DSHS at some point between March 7, 2014, and February 28, 2021, to provide personal care services for a client whose paid care hours were reduced because DSHS coded the client’s status in a CARE assessment as “shared benefit” for at least one task.

The Court ordered that you be sent the notice because you have a right to know about a proposed settlement and your legal rights and options before the Court decides whether to approve the settlement. The lawsuit is known as Liang, et al. v. State of Washington, et al., No. 20-2-02506-34; is pending in the Washington Superior Court for Thurston County; and was brought by certain IPs (referred to as “Plaintiffs” in the notice) against the State of Washington, DSHS, and the DSHS Secretary (together referred to as “DSHS” in the notice.

The Plaintiffs allege that from March 7, 2014, through February 28, 2021, DSHS did not pay certain IPs all the wages they were owed. Plaintiffs say this happened when DSHS reduced paid care hours because it found that an IP and a client, or multiple clients in the same household, shared in the benefit of certain personal care tasks performed by the IP, like making meals, shopping, housework, or supplying wood. The lawsuit seeks back pay and other money damages under state contract and wage law for work Plaintiffs claim IPs worked without pay.

DSHS denies that it violated any laws or did anything wrong.

A class action is a kind of lawsuit where the named plaintiffs sue for themselves and also for other people who are similarly situated. In this case, the Plaintiffs are three IPs, Sylvia Liang, Manuel Brito, and Shazia Anwar. Other IPs are known as “class members.” In a class action, one court resolves the issues for all class members, except for those who exclude themselves from the class.

The Court has certified this case as a class action only for purposes of the proposed settlement. The Court has not decided whether this case should be certified as a class action for purposes of deciding the merits of Plaintiffs’ claims. If the Court did not grant final approval of the settlement for any reason, there would not be a settlement class, and the parties would have gone back to litigating the case. IPs covered by the settlement are known as “Settlement Class Members,” except for those who excluded themselves from the settlement class.

Both sides believe they would win in court, but the court has not ruled in favor of either party. Both sides agreed to a settlement to avoid the costs, delays, risks, and uncertainties associated with a trial and appeals. They did so after lengthy investigation and exchange of information. Settlement Class Members who qualify under the calculation described in FAQ 9 below get compensation.

Plaintiffs and their lawyers (Class Counsel) think the settlement is in the best interests of all Settlement Class Members and that the terms of the settlement are fair, reasonable, and adequate.

The settlement class is defined as: “all current and former IPs who contracted with DSHS to provide personal care services for a client whose in-home care hours were reduced because DSHS, through its agents, coded the client in a CARE assessment as having a Status of ‘shared benefit’ with respect to one or more IADLs.”

You were part of the settlement class if you received a notice, unless you excluded yourself by opting out (see FAQ 17). If you received the notice, it is because DSHS’s records show that you worked for at least one client whose authorized care hours were reduced during the Class Period because DSHS coded the client’s “status” in the CARE assessment as “shared benefit” for at least one personal care task.

DSHS has agreed to pay $116,068,000, which will be used for payments to Settlement Class Members, DSHS’s and IPs’ shares of payroll taxes, Class Counsel’s attorneys’ fees and costs, the costs of settlement administration and notice, and, where applicable, union dues.

The checks from the first round of payments have all expired and the residual funds were used to make an additional payment to Class Members who have not opted out and also cashed their first settlement payment. For all Settlement Class Members that cashed their first settlement payment, each second individual settlement payment is a pro rata (or proportionate) share of the residual funds based on the number of hours you worked without pay due to the incorrect categorization or those hours as a “Shared Benefit” during the Class Period.

The second round of settlement payments were mailed between January 31, 2024, and February 1, 2024. The checks from the second round of payments have all expired and cannot be reissued.

If you did not cash your first settlement payment, then you were not eligible to receive a second settlement payment per the Settlement Agreement.

The parties agreed on a method to calculate payments for each Settlement Class Member, individually, based on data in DSHS’s records. The data show which clients DSHS assessed as having a “shared benefit,” the IPs who cared for those clients, how many authorized hours were reduced and unpaid because of “shared benefit” status coding, the paid providers assigned to “shared benefit” tasks, and how much the State paid those providers.  

Your initial estimated share of the settlement was calculated by dividing your estimated back pay by the total back pay for all Settlement Class Members, and multiplying that amount by $105 million. $105 million is the total settlement fund minus amounts held back to pay for DSHS’s share of payroll taxes, Class Counsel’s attorney’s fees and costs, settlement administration and class notice costs, and other expenses. Back pay for this calculation was the number of unpaid hours due to “shared benefit” multiplied by the applicable wage rate (including overtime, where applicable), without double damages or interest. If multiple providers for the same client were affected by “shared benefit” in the same month, unpaid hours were spread proportionately among them.

Residual funds from uncashed checks in the first round of payments were used to make an additional payment to Class Members that have not opted out and have cashed their first settlement payment. The second settlement payments again are your proportionate share of the remaining overall settlement fund, plus interest that has accrued on the fund.

If other class members did not cash their second settlement checks or other settlement expenses cost less than estimated, you may get up to one more additional payment that will be your proportionate share of the remaining overall settlement fund, plus interest that has accrued on the fund.

The settlement fund was allocated among Settlement Class Members based on pro rata (i.e., proportionate) percentages of the fund, taking into account each IP’s estimated individual damages as a portion of the overall damages. Individual settlement amounts varied based on factors such as the length of time the IP worked between March 7, 2014, and February 28, 2021, the number of care hours that were reduced from authorized hours due to “shared benefit” (which could be very different depending on the client’s total care hours and how much “shared benefit” DSHS decided there was), the IP’s wage rate, and whether overtime rates apply.

You might be a Settlement Class Member but not be owed any money if DSHS’s records show other providers, and not you, were assigned to “shared benefit” tasks in a client’s care plan, if DSHS did not select “shared benefit” as the “status” for the client, or if DSHS assessed shared benefit outside the Class Period.

Verification: By cashing or depositing your settlement payment, you verified that:

1. You are or were an IP for a client whose monthly in-home personal care services authorization was reduced because of “shared benefits” you provided;
2. You provided in-home personal care services to that client that were included in the client’s care plan for at least the number of shared benefit adjusted hours indicated in DSHS’s data, by month and year, that was used to calculate your pro rata (proportional) share of the settlement fund (these hours are listed on page 9 of your notice); and
3. You were not paid for those services. 

Redistributions: If you did not cash or deposit your settlement payment, your share (and any interest on it) will be redistributed to other Settlement Class Members. Similarly, if other Settlement Class Members did not cash their checks, their shares will be redistributed to the settlement class (including you, if you did not opt out). There will be two redistributions. Any payments that are not cashed after the second re-distribution will be sent back to the State.

Payroll Taxes: Your settlement payment is back pay subject to applicable income and payroll taxes. The settlement administrator will report those amounts to the IRS on a W-2 form.

Union Dues: If you are currently a member of SEIU 775, or were a member when you were last paid as an IP, the settlement administrator will deduct 3.2% from your payment for the months that you were a member of SEIU 775 and will send that money to the union. Many class members who are union members had no union dues withheld from the November 2022 checks but should have. The Court has approved a method for correcting this error in the collection of union dues from first settlement payments. Class members who are union members and cashed their first checks but did not have union dues withheld are receiving a second distribution payment that is equal to their share of the residual settlement funds (less appropriate tax and union dues withholdings) minus the union dues that should have been withheld in November 2022 but were not.

Settlement Requirements: The settlement required the federal agency that runs Medicaid to confirm that it would provide matching federal funds for all settlement payments. It provided that confirmation in December 2021. It also required that the Washington Legislature fully fund the settlement. The Legislature did that in March 2022, and the Governor signed the budget on March 31, 2022.

Opt Outs: If more than 3% of the class members decide to opt out of the settlement, DSHS could have voided the settlement.

Unless you excluded yourself (as explained in FAQ 17 below), you will remain in the settlement class. The Court dismissed the case “with prejudice” after it approved the settlement. Any claims that were or could have been asserted in this lawsuit, including by you, will be permanently dismissed. In other words, the Court’s dismissal order releases and discharges DSHS from claims for unpaid wages or overtime, exemplary or double damages, attorneys’ fees, and interest that were or could have been asserted by the Plaintiffs or Settlement Class Members based on the facts and allegations in the Complaint between March 7, 2014, and February 28, 2021, including but not limited to claims under the state Minimum Wage Act, RCW 49.46, the Wage Rebate Act, RCW 49.52, and the duty of good faith and fair dealing in the contracts between IPs and DSHS. When claims are “released” that means a person covered by the release cannot later sue or recover from the State or the other released parties (such as DSHS and their agents) for any of the claims that are covered by the release.

Since the Court approved the settlement, DSHS also releases the Plaintiffs and the Settlement Class Members who have not opted out of the settlement class from all claims that were or could have been asserted relating to this lawsuit, including claims for breach of contractual obligations by IPs, contract actions against Settlement Class Members, including actions claiming that the Settlement Class Members worked unauthorized hours related to the shared benefit rules.

Initial Distribution checks were mailed on November 15, 2022. The checks from the first round of payments have all expired and cannot be reissued. Residual funds were used to make an additional payment to Class Members who have not opted out and also cashed their first settlement payment.

The second round of settlement payments were mailed between January 31, 2024, and February 1, 2024. The checks from the second round of payments have all expired and cannot be reissued.

If you did not cash your first settlement payment, then you were not eligible to receive a second settlement payment per the Settlement Agreement.

The Settlement Administrator was not obligated to apply any tax exemptions in its settlement payments. The Settlement Administrator did not apply any exemptions it did not know about or for which sufficient information was not provided. The Settlement Administrator did apply all tax exemptions for which the State of WA, DSHS provided sufficient information. This did not include an income exclusion for Difficulty of Care. 

Enclosed with your check was an IRS Tax Form. If you have questions about the tax treatment of the payment (including any possible tax exemptions applicable to you), please consult your tax advisor. The Settlement Administrator cannot provide tax advice. The Settlement Administrator cannot adjust the taxes withheld and remitted for this payment.
 

If you are currently a member of SEIU 775, or were a member when you were last paid as an IP, the settlement administrator deducted 3.2% from your payment for the months that you were a member of SEIU 775 and sent that money to the union. Many class members who are union members had no union dues withheld from the November 2022 checks but should have. The Court has approved a method for correcting this error in the collection of union dues from first settlement payments. Class members who are union members and cashed their first checks but did not have union dues withheld are receiving a second distribution payment that is equal to their share of the residual settlement funds (less appropriate tax and union dues withholdings) minus the union dues that should have been withheld in November 2022 but were not.

If you wanted to exclude yourself from the settlement, you must have mailed, via First Class United States Mail, the form provided with your notice to:

Liang v. State of WA DSHS: IP Wage Settlement
c/o JND Legal Administration
PO Box 91373
Seattle, WA 98111

and included your name, current address, telephone number, and email address. To be effective, an opt-out statement must have been completed, signed, and postmarked no later than July 22, 2022.

If you submitted a valid and timely request for exclusion from the settlement class, you will not be entitled to receive any benefits under the proposed settlement agreement, and you will not be bound by its terms or any release of claims or dismissal if the settlement agreement is approved by the Court. You may also be able to sue (or continue to sue) DSHS in the future, if your claims accrued within the applicable statute of limitations. You are unable to exclude yourself at this time as the deadline has passed.

No. If you opted out or excluded yourself, you were not mailed any money from this settlement. You may sue, continue to sue, or be part of a different lawsuit against DSHS regarding the same claims, subject to all applicable defenses.

If you stayed in the settlement class, you could have objected to the settlement if you did not like any part of it. You could have given reasons why you think the Court should not have approved it. The Court would have considered your views. You can no longer object, as the time has passed.

Your objection must have contained your name, current address, telephone number, and email address, as well as the reasons why you objected. You may also have appeared in person at the final hearing to explain your objection(s). The hearing has already taken place. You may have hired an attorney at your own expense to represent you at this hearing and to make objections to the settlement.

Only Settlement Class Members who objected to the proposed settlement through these procedures can appeal any decision in this case. If you did not object by the deadline, you cannot object later.

Objecting is simply telling the Court that you do not like something about the settlement. You could object only if you remained in the settlement class. Excluding yourself is telling the Court that you do not want to be part of the settlement class. If you excluded yourself, you have no basis to object because the case no longer affects you.

The Court decided that Jennifer Robbins, Darin M. Dalmat, and Sarah Derry at Barnard Iglitzin & Lavitt LLP are qualified to represent you and all Settlement Class Members. These lawyers have been designated as “Class Counsel” in this lawsuit. More information about these lawyers’ work and experience is available at www.workerlaw.com. You may reach them at robbins@workerlaw.com, dalmat@workerlaw.com, derry@workerlaw.com, or 800-238-4231. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel asked the Court to approve payment of $1,625,000 (1.4% of the settlement fund) for their attorneys’ fees and litigation costs. This amount was approved and paid out of the total settlement fund. If the legal work after September 17, 2021, costs more than Class Counsel expected, they may ask the Court to be reimbursed for supplemental attorneys’ fees. DSHS can object if Class Counsel make that request. The settlement can still be effective even if the Court denies some or all of Class Counsel’s request for fees and costs.

On September 16, 2022 at 9:00 a.m., at the Thurston County Superior Court, 2000 Lakeridge Dr. SW, Bldg. 3, Olympia, WA 98502, the Court held a hearing to determine whether the proposed settlement is fair, adequate, and reasonable, and granted final approval and the Final Approval Order was filed.

No, unless you objected to the settlement. If you did not opt out of the settlement, Class Counsel represented you at the hearing. You were welcome to come at your own expense. If you sent an objection, you did not have to come to Court. As long as you mailed your written objection on time, the Court will have considered it. You could have also paid for your own lawyer to attend, but it is not necessary for your objection to have been considered.

If you filed a timely objection, you may have asked the Court for permission to speak at the fairness hearing. This deadline has passed, as has the Court hearing.

The notice summarizes the proposed settlement. More details are in the Settlement Agreement.

You can call 888-964-0102; write to the Settlement Administrator at:

Liang v. State of WA DSHS: IP Wage Settlement
c/o JND Legal Administration
PO Box 91373
Seattle, WA 98111

or visit this website, where you will find answers to common questions about the settlement, an opt-out form, plus other useful information in relation to the settlement.