Orlando Health Faces Federal Lawsuit Over Refund Failures

A federal lawsuit filed earlier this week alleges Orlando Health - one of Florida’s largest healthcare networks - failed to pay over $5 million in refunds for medical residents. The lawsuit - which was filed by Kelley/Uustal Attorney Jordan M. Lewis and local Attorney T. Scott Tufts on Monday - is seeking class action status for former medical residents who claim that Social Security and Medicare contributions were withheld from their pay.

According to a recent article published in the Orlando Sentinel, the lawsuit is one of several claims that have been filed against hospitals and the IRS over refunds of Social Security and Medicare contributions (FICA) from medical residents. Although residents are technically students in medical programs, the IRS ruled that they must pay the taxes. However, several courts have ruled that the IRS had to refund contested revenues collected between 1995 and 2005.

Although hospitals outlined a formal process to claim refunds, the lawsuit claims that Orlando Health failed to act and advise medical residents about refund opportunities and that they applied for refunds for only one year. According to the lawsuit:

“Orlando Health should reimburse, cover, or otherwise disgorge sums sufficient to cover the lost tax refunds of plaintiffs and the class.”

Attorneys at Kelley/Uustal are passionate about protecting the rights of the injured and the wronged. If you have questions about class actions or pursing a claim for compensation, contact our legal team for a free consultation.

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