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The HCSC overtime settlement in Candelaria v. HCSC resolved overtime claims against Health Care Service Corporation, which operates Blue Cross Blue Shield plans in multiple states. The Siegel Law Group, which has recovered more than $100 million for workers and filed more than 100 federal overtime cases, was lead counsel in this Blue Cross Blue Shield overtime lawsuit that achieved one of the highest class participation rates the firm has seen.
The workers alleged that HCSC misclassified salaried employees as exempt from overtime, and that these employees worked more than 40 hours per week without receiving the overtime pay required by federal and state overtime laws. HCSC operates Blue Cross Blue Shield plans in Illinois, Texas, Montana, Oklahoma, and New Mexico.
In Candelaria v. HCSC, Case No. 2:17-cv-404-KG-SMV (D.N.M.), Siegel Law Group was lead counsel in a hybrid FLSA collective action and Rule 23 class action asserting claims under the Fair Labor Standards Act (FLSA) and the New Mexico Minimum Wage Act (NMMWA).
The HCSC overtime lawsuit challenged the company's classification of salaried workers as exempt under the administrative exemption. Under the FLSA, the administrative exemption requires that an employee's primary duty involve the exercise of discretion and independent judgment with respect to matters of significance. When employees follow standardized protocols and company-prescribed procedures, they typically do not meet this standard — regardless of whether they receive a salary.
The hybrid structure of the case — combining an FLSA collective action with a state-law class action under Rule 23 — ensured that workers received the benefit of both federal protections and New Mexico state overtime laws. This dual approach is a strategy the Siegel Law Group has used successfully in multiple overtime lawsuits against major healthcare companies.
On November 4, 2020, Judge Kenneth Gonzales approved the settlement. The class encompassed 579 members across three groups: the New Mexico Class, the Illinois Class, and the FLSA Class. The response rate was extraordinary — 351 valid claims were filed, only 1 class member opted out, and no one objected.
The court approved attorneys' fees at 35% and $5,000 service awards to named plaintiffs. The near-total participation rate and lack of objections reflected the strength of the claims and the fairness of the settlement terms.
Blue Cross Blue Shield plans collectively insure more than 100 million Americans, employing tens of thousands of case managers, care coordinators, and claims processors across the country. Overtime misclassification is widespread across these plans, as employers routinely apply the administrative exemption to salaried positions that do not actually involve the independent judgment the law requires.
The Siegel Law Group has brought multiple cases against major health insurers, including the Unum Group case, where we won certification before it later settled for $14.8 million, the NaviHealth settlement, and the Molina Healthcare settlement.
If you work for a Blue Cross Blue Shield plan or other health insurer and believe you are owed unpaid overtime, you may have a claim under the FLSA and your state's overtime laws. The Siegel Law Group has secured over 50 class and collective action certifications. Contact us today for a free, confidential consultation. We work on contingency: we advance case costs, they are repaid from any recovery, and if we do not recover you owe us nothing — no fee and no costs.
The settlement amount is confidential.
The workers alleged that HCSC misclassified salaried employees as exempt from overtime under the administrative exemption. They alleged they put in more than 40 hours per week without receiving the overtime pay required by the FLSA and the New Mexico Minimum Wage Act.
Many Blue Cross Blue Shield employees may be entitled to overtime. Salaried workers whose duties follow standardized procedures and company protocols may not qualify for the administrative exemption, even if their employer classifies them as exempt.
The Candelaria v. HCSC settlement has been finalized. However, if you currently work for a Blue Cross Blue Shield plan or another health insurer and believe you are misclassified as exempt, you may have your own claim. Contact the Siegel Law Group for a free evaluation.
The first step is contacting an overtime attorney who can review your pay records and job duties. Under the FLSA, collective actions allow similarly situated workers to join together. The Siegel Law Group offers free, no-obligation consultations.
In the HCSC case, the court approved attorneys' fees at 35%. The Siegel Law Group works on contingency. We advance the costs of the case, and if we recover, those costs are repaid out of the recovery. If we do not recover, you owe us nothing — no attorney's fee and no costs.
A hybrid case combines a federal FLSA collective action (opt-in) with state-law class actions under Rule 23 (opt-out). This maximizes coverage by leveraging both federal and state overtime protections simultaneously.
If you did this kind of work for another employer and weren't paid overtime for hours over 40, tell us your job title, your employer and the state you worked in. We'll tell you plainly whether we think you have a case. Federal law makes it illegal to retaliate against you for asking.
Siegel Law Group PLLC concentrates in unpaid overtime cases under the FLSA and state wage laws. The firm has filed more than 100 federal overtime cases, obtained more than 50 class and collective certifications, and recovered more than $100 million for workers. Free consultation. Contingency fee: we advance case costs, and they are repaid from any recovery. No recovery, no fee and no costs. Phone: (214) 790-4454 | Email: [email protected]
These are results in other people's cases. Every case depends on its own facts and law. Prior results do not guarantee a similar outcome. This website contains attorney advertising.
Attorney responsible: Jack L. Siegel, Siegel Law Group PLLC, 11341 W. US Hwy 290, Bldg. 2, Austin, TX 78737. Licensed in Texas.
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