Care New England Sued Over Alleged Wage Underpayment
A new class action lawsuit alleges that Kent County Memorial Hospital underpaid staff through time-rounding practices.
Updated on Oct. 13, 2026 in Nursing Jobs
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Alesky Romanov has filed a class action lawsuit against Care New England and Kent County Memorial Hospital for alleged wage and record-keeping violations. The complaint claims the defendants failed to pay proper overtime for hours worked over the 40-hour threshold.
Why it matters
This case highlights the operational risk of automated time-rounding policies, which can trigger significant liability if they result in underpayment. Businesses must ensure that timekeeping systems accurately reflect actual work hours to maintain compliance with federal and state labor laws.
The lawsuit covers a three-year period of alleged wage and record-keeping violations. It specifically targets the failure to pay the required 1.5 times overtime compensation for hours exceeding the 40-hour workweek.
The players
Care New England
A health system operating multiple hospitals and healthcare facilities in Rhode Island.
Kent County Memorial Hospital
A facility operated by Care New England serving the Warwick area.
Michael Wagner
The outgoing CEO of Care New England who announced his departure in August 2026.
Alesky Romanov
The plaintiff who initiated the class action lawsuit.
The details
The lawsuit alleges that Care New England and Kent County Memorial Hospital used a time-rounding policy to systematically shorten recorded hours. Plaintiffs claim that management submitted post-edited and inaccurate time records into payroll systems, effectively avoiding overtime obligations. The suit seeks recovery of unpaid wages, liquidated damages, penalties, and attorney fees under the Fair Labor Standards Act and the Rhode Island Payment of Wages Act.
Timeline
August 2026: CEO Michael Wagner announced his planned departure.
October 13, 2026: The lawsuit details were reported.
Market Landscape
The lawsuit follows a recurring pattern of litigation under the Fair Labor Standards Act regarding employer time-rounding and record-keeping practices. Such cases often set precedents for how healthcare systems must document and compensate hours to remain compliant.
Operators should audit their payroll software to ensure time-rounding features do not suppress actual hours worked or trigger overtime violations. Consult with legal counsel to verify that your timekeeping procedures align with both the Fair Labor Standards Act and state-specific wage requirements.
The takeaway
Management must ensure that all timekeeping systems remain transparent and accurate, as rounding policies that reduce recorded hours can lead to significant litigation exposure. Review your payroll system logs to confirm that all hours worked beyond the 40-hour limit are consistently compensated at the mandatory overtime rate.
Further reading
For more information on labor compliance, see our Nursing Jobs section.
Source note: This article includes information reported by GoLocalProv.
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