Choose wisely: Cerner gives employees choice between right to sue and merit pay raises
- Cerner gave its 17,000 U.S. employees a choice between retaining the right to sue the company over labor disputes and eligibility for merit-based pay raises.
- The offer is voluntary and has no time limit.
- The Kansas City-based medical records company faces two class action lawsuits claiming the company failed to properly pay its employees overtime.
Cerner made the controversial offer to its employees in an apparent attempt to limit its exposure to class-action litigation. A spokesman for the firm told the Kansas City Star the company preferred to settle labor disputes through arbitration. Cerner claimed the arbitration process was faster and less costly than settling in court.
Initially, employees were offered $500 in Cerner stock options if they signed the agreement by December 8th. However, employees are not obligated to sign the agreement and have no time limit on their decision. Pay could still be increased through promotion, if an employee decided against signing.
The offer, however, gives employees a weighty choice. It is unclear if failure to sign would affect the likelihood of promotion.
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