Howard Brown to Provide $1 Million in Back Pay to Laid-Off Workers as Part of Settlement
Settlement Reached with National Labor Relations Board
A group of employees laid off by Howard Brown Health will receive $1 million in back pay as part of a settlement the health center reached earlier this month with the National Labor Relations Board.
Terms of the Settlement
Under the settlement, announced Friday, Howard Brown also must pay the laid-off employees a total of $48,000 in 401(k) reimbursements and $60,000 in compensation for financial harm caused by the layoffs, according to the NLRB. Howard Brown, the Midwest’s largest LGBTQ+ health center, also must offer to reinstate the laid-off employees, stop violating federal law regarding negotiating with the union, and post notice of this online and at its facilities.
Background on the Layoffs
In December 2022, Howard Brown laid off 61 union positions and four nonunion positions, citing a budget gap attributed to changes in pharmaceutical legislation and the end of some COVID-19 assistance programs. A three-day strike ensued, bringing about 440 employees citywide to the picket line for the second time in two months. The layoffs included all drug abuse case managers at South Side locations, members of the gender-affirming care team for youth, and 14 of the 15 members of the In Power team, which was dedicated to helping survivors of sexual assault navigate the healthcare and legal systems.
Employee Reaction
Mera Flores, who had worked at the Sheridan office for nearly two years before being laid off, said she was happy with the settlement, but won’t consider returning without changes in management. “I just don’t trust them now. They just have people in charge who don’t care about the [queer] community, but care about money and how they look to the [queer] community,” Flores said. “They’d all have to be gone for me to come back.”
Union Negotiations
A three-year contract was ratified in May after the resignation of former CEO and President David Munar and more than 17 months of negotiations. Since then, the company closed two clinics in recent months and laid off 43 in a second round of layoffs this July — including 12 of the workers whose jobs were reinstated as part of a separate NLRB ruling.
Conclusion
The settlement represents an important step in the path to healing and moving forward as a united organization. While the layoffs had a significant impact on employees, the agreement provides a sense of closure and a chance for Howard Brown to rebuild and move forward.
Frequently Asked Questions
Q: What is the total amount of back pay being provided to laid-off employees?
A: $1 million
Q: What other compensation is being provided to laid-off employees?
A: $48,000 in 401(k) reimbursements and $60,000 in compensation for financial harm caused by the layoffs
Q: What are the terms of the reinstatement offer?
A: Howard Brown must offer to reinstate the laid-off employees
Q: What are the consequences for Howard Brown if it violates the settlement terms?
A: The company must post notice of the settlement online and at its facilities
