Kaiser Foundation Health Plan Sued for Wrongful Termination and Whistleblower Retaliation


On Thursday, Kaiser Foundations Health Plan of the Northwest filed to remove the case of  Castellanos v. Kaiser Foundation Health Plan of the Northwest to the District of Oregon from Oregon state court. 

The plaintiff, Emily Castellanos, filed the original complaint in the Circuit Court of Oregon for Marion County against Kaiser Foundation Health alleging wrongful termination and whistleblower retaliation. Subsequently, the plaintiff filed an amended complaint and added a breach of contract claim against the exclusive certified bargaining representative for employees working at Kaiser, Service Employees International Union Local 49. 

According to the complaint, Kaiser Foundation Health is an Oregon nonprofit corporation that operates the North Lancaster Medical Office located in Marion County, Oregon. The complaint further states Emily Castellenos worked for the defendant for four years as a Licensed Practical Nurse at the North Lancaster Medical Office until her termination on October 17, 2020. 

The plaintiff alleges that this suit stems from events that occurred during her September 19, 2020 shift at the North Lancaster Medical Office. According to the plaintiff, on September 19, 2020, the acting supervisor informed the plaintiff and the staff on duty that medical assistants would administer COVID-19 tests and swabs due to staff shortages from COVID-19. The plaintiff later states, that evening, the acting supervisor and the plaintiff were informed by the shift lead that allowing medical assistants to administer COVID-19 tests and swabs was against protocol. 

The plaintiff alleges that following the events of September 19, 2020, she spoke with a superior about her concerns about staffing issues. She stated she had too many nursing tasks to do in a safe and efficient manner, and there could have been medical errors made due to the complete lack of support. Further, she discussed calling the compliance hotline with her supervisor to discuss the staffing shortages but was persuaded otherwise. 

The complaint alleges that on October 17, 2020, the plaintiff was required to participate in an alleged discovery meeting with her employees to discuss the events of September 19, 2020. However, at the meeting, the plaintiff was allegedly disciplined and fired for conduct on September 19. Following her termination, the plaintiff states she went through the grievance process through Service Employees International Union Local 49 and the termination was upheld. The complaint alleges that the defendant still uses medical assistants to administer COVID-19 testing and no other employee was discharged in complete regard for the plaintiff’s discharge. 

The amended complaint brings five causes of action against Kaiser including whistleblower retaliation, nursing staff retaliation, breach of contract and wrongful termination. Additionally, the plaintiff brings a breach of contract claim against Service Employees International Union Local 49 for failing to comply with the collective bargaining agreement. For these causes of action, the plaintiff seeks $92,000 in economic damages, $500,000 in non-economic damages, reinstatement of her position and benefits, attorneys fees and costs. The plaintiff is represented by Lafky & Lafky and Kaiser is represented by Stoel Rives LLP