Respiratory therapists who worked on call for The PromptCare Companies may be covered by a proposed $325,000 class and collective action settlement of claims alleging PromptCare did not pay for time worked on call or for overtime. A federal judge declined to preliminarily approve the deal on September 29, 2026, and gave the parties 30 days to supply more information; there is nothing to file yet.
Allegations Only · Settlement Not Approved
This article describes a wage and hour lawsuit and a proposed settlement the court has not approved. The statements about PromptCare's pay practices are unproven allegations. PromptCare has not been found liable, and there is nothing to claim at this time. This page is informational and is not legal advice.
What Is This About?
On September 29, 2026, Judge Kenneth M. Karas of the U.S. District Court for the Southern District of New York declined to preliminarily approve a proposed $325,000 settlement in Schiller-Egles v. The PromptCare Companies, Inc., No. 7:23-cv-06790. The denial is without prejudice, so the parties can try again: the court ordered them to file a supplemental application within 30 days.The same order granted the rest of the motion. It conditionally certified the settlement class, appointed plaintiff's lawyers at Fitapelli & Schaffer, LLP as class counsel, and approved the proposed notice of settlement and the procedure for administering it, which would take effect only once the settlement itself is approved.
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What the Lawsuit Alleges
Linda Schiller-Egles, a respiratory therapist who has worked for PromptCare in New York since about September 2019, filed the case on August 2, 2023. PromptCare is a New Jersey-headquartered company that provides respiratory products and infusion therapy services and, according to the complaint, operates more than 40 locations across the country.The complaint alleges that PromptCare paid respiratory therapists a stipend for signing up to be on call, $25 a weekday, $50 a weekend day and $100 a holiday, but did not pay them for the time they actually worked while on call, either at their agreed rate or at the overtime rate for hours above 40 in a week. It also alleges that therapists, as manual workers under New York law, were paid every two weeks rather than weekly, and that their wage statements did not reflect all hours worked. The claims are brought under the federal Fair Labor Standards Act (FLSA) and the New York Labor Law. PromptCare has not been found liable on any of them.
In March 2025 the court ruled on PromptCare's motion to dismiss and allowed the case to proceed, and it conditionally certified an FLSA collective of respiratory therapists who worked on call for PromptCare at any time from November 20, 2020 onward. The parties told the court in July 2025 that they had reached a settlement, and plaintiff moved for approval in September 2025.
Who the Proposed Settlement Would Cover
The proposed settlement class is current and former respiratory therapists who worked on call for PromptCare in New York between December 17, 2016 and January 1, 2023, or outside New York between November 20, 2020 and January 1, 2023. Plaintiff's motion put the class at about 38 people, with 111 members in the FLSA collective.The proposed agreement would divide the net fund by points: 2 points for each week worked during the class period, or 0.5 points per week for a class member who previously accepted a release payment from PromptCare. The court found that formula treats class members equitably.
Why the Judge Held Off
The court found the settlement was negotiated at arm's length by experienced counsel and saw no sign of fraud or collusion. It could not yet find the amount fair and reasonable, for four reasons:• Plaintiff estimated her best possible recovery at about $497,513 in unpaid wages, but did not explain the methodology or the data behind that figure.
• The estimate left out liquidated damages, which the FLSA and New York Labor Law generally award in an amount equal to the unpaid wages, and it did not separate the FLSA claim from the state-law claims, so the court could not adjust it.
• Part of the release would have waived any wage-and-hour claim through January 1, 2023, not only claims based on the facts in the lawsuit. The court held that portion overly broad.
• Class counsel asked for $108,333.33, about one-third of the fund, plus $5,000 in costs, without contemporaneous billing records showing the hours worked.
On plaintiff's own numbers, the net amount of about $211,667 would be roughly 42.5% of the estimated best recovery, a share the court said would ordinarily support approval if the estimate were properly documented.
What Happens Next
The parties have until about October 29, 2026, 30 days from the order, to file a supplemental application addressing the court's concerns. If the court then grants preliminary approval, class members would be sent the court-approved notice explaining the settlement and how to opt out or object; under the approved notice, opt-out requests would be due within 60 days after claim forms are mailed. The court would then decide whether to grant final approval. Until that happens, there is nothing for PromptCare respiratory therapists to file.Questions
Is the PromptCare settlement approved?
No. On September 29, 2026, Judge Kenneth M. Karas denied preliminary approval of the proposed $325,000 settlement without prejudice, meaning the parties can try again. He gave them 30 days to file a supplemental application with the information the court said was missing.
Who would the PromptCare settlement cover?
The proposed settlement class is current and former respiratory therapists who worked on call for PromptCare in New York between December 17, 2016 and January 1, 2023, or outside New York between November 20, 2020 and January 1, 2023. Plaintiff's motion put the class at about 38 people, alongside 111 members of the separate FLSA collective.
How would the money be divided?
Under the proposed agreement, each class member would earn 2 points for every week worked during the class period, or 0.5 points per week for anyone who previously accepted a release payment from PromptCare, and the net fund would be split by points. Requested attorneys' fees of $108,333.33 and $5,000 in costs would come out first, leaving about $211,666.67. None of this is final until the court approves a settlement.
Do PromptCare respiratory therapists need to do anything now?
No. There is no approved settlement, no claim form and no deadline. If the court later approves a settlement, class members would receive a court-approved notice explaining their options, including how to opt out or object.
Sources
• Schiller-Egles v. The PromptCare Companies, Inc., No. 7:23-cv-06790 (S.D.N.Y.), court docket• Opinion & Order on the Motion for Preliminary Approval, ECF No. 94 (September 29, 2026)
• Plaintiff's Motion for Preliminary Approval, supporting declaration and memorandum of law, ECF Nos. 91–93 (September 12, 2025)
