Group Health Reaches Agreement With U.S. Department of Labor on Timekeeping Overtime Issues

Based on its assessment of the data, the Cooperative will
make payments representing additional regular and overtime pay to 939
individuals. Together Group Health and Group
Health Permanente (its multi-specialty medical group) employ more than 9,000
staff.

President of Largest Federal Sector Union Responds to Nomination of Judge Michael Chertoff to Head Department of Homeland Security

labor compensation

"While such agreements aren't uncommon, particularly in cases involving
large employers, the rules and regulations surrounding employee timekeeping
are complex, and compliance with them is important," said Brenda Tolbert, VP
of Human Resources.
The Cooperative also plans to update its new staff orientation, to include pay
practices and timekeeping information for our new hires.

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ghc.
"From his work at the Justice Department, Judge Chertoff knows first-hand
the dedication and commitment of countless union members, especially those
government attorneys and others who have worked to effectively position the
United States to fight the war on terrorism.

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Eligible Staff to Receive Pay for Unrecorded Work Time

SEATTLE, Group Health Cooperative announced today
it has reached an agreement with the U. Individual payments will vary
depending upon the amount of unrecorded work time reported. Group Health's commercial and Medicare plans have received the top
rating of "Excellent" from the National Committee for Quality Assurance
(NCQA )."

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The American Federation of Government Employees (AFGE) is the largest
federal employee union, representing 600,000 workers in the federal government
and the government of the District of Columbia.

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In 2004, Group Health reinforced and
clarified its timekeeping and time clock policy and procedures for all staff.

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"Judge Chertoff has had a distinguished career, both as a federal employee
in the Department of Justice, where he served as head of the criminal division
from 2001 to 2003, and on the Federal Court of Appeals.

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Department of Labor (DOL), resolving
timekeeping and pay issues stemming from a DOL review.

Labor law describes the relationship between management and labor, usually in the context of unionization and management-union disputes.

benefits lawyers

"We'll continue to seek
improvements to our systems and processes, even where a DOL review may not be
involved.

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, serve more than 540,000 members in Washington
and Idaho.

Group Health encompasses medical and specialty centers, hospitals
(including a full-service community hospital), a nationally recognized
research center, and a charitable foundation.

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64 million to eligible staff members.org under
"Newsroom.

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"We're very pleased that our cooperative efforts with the
government have resulted in an agreement that's fair, equitable, and in
compliance with legal requirements pertaining to overtime ," Tolbert added.

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Under terms of the agreement with the DOL, Group Health will pay a total
of $1.

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The review concerned
work reported by some Group Health staff, but not included in payroll records
-- much of it occurring before the Cooperative voluntarily improved work
reporting and recording policies in 2004.

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Over the past several months, using DOL-approved methodology, Group Health
carefully analyzed its timekeeping practices among more than 9,000 current and
former employees ."

Group Health Cooperative
Founded in 1947, Group Health is a consumer-governed, nonprofit health
care system that coordinates care and coverage.

pay compensation

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Based in Seattle, Group Health
and Group Health Options, Inc.

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"Group Health is committed to compensating its valued staff fairly,
competitively , and in accordance with applicable laws, regulations, and
collective bargaining agreements," said Tolbert.

Please visit the virtual newsroom on our Web site, http://www.

whistleblower harvey

WASHINGTON, John Gage, national president of the
American Federation of Government Employees (AFGE), issued the following
statement in response to the nomination of Federal Appeals Court Judge Michael
Chertoff to lead the Department of Homeland Security: "AFGE congratulates
Federal Appeals Court Judge Michael Chertoff on his nomination to head the
Department of Homeland Security. And we look forward to working with him on the
important new personnel system being implemented in the department.

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Even before the DOL's review, Group Health had begun implementation of the
Kronos timekeeping system to help simplify, automate, and standardize
timekeeping and payment practices.
"The thousands of men and women in AFGE who work in the Department of
Homeland Security look forward to working with Judge Chertoff on the important
issues facing our nations, including border protection, customs inspections
and immigration enforcement.

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It is related to employment law, a broader category which also encompasses the individual rights of employees without regard to union membership.

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