LifeStance Health Group Class Action Lawsuit: Uncovering Unlawful Employment Practices

It is the right of every employee to be paid for all the hours they have worked and to be treated fairly in the workplace. Unfortunately, not all employers adhere to these basic principles. One such employer is LifeStance, a mental health treatment provider based in the United States. A lawsuit was filed against the company for unlawful payment practices and retaliation.

The lawsuit filed against LifeStance alleges a pattern and practice of refusing to pay employees wages lawfully and professionally earned in performing their job responsibilities. The plaintiffs also claim that they were ostracized and condemned for expressing their opinions about their compensation, as well as anything having to do with patient billing. Additionally, LifeStance is accused of seeking to recoup wages lawfully earned by its employees under the guise of “an advance.”

LifeStance represents itself as the top mental healthcare company in the country, providing evidence-based treatment services for children, adolescents, and adults with mental health issues.

LifeStance states that it is committed to delivering state-of-the-art clinical excellence. However, the treatment of their employees who provide the care to their clients is sub-par.

Their revenue largely depends on a dedicated team of clinicians—many of the Plaintiffs in this litigation. This places immense pressure on the senior management to increase clinician numbers, retain top talent, and boost the number of patient encounters per clinician. Failure to achieve these crucial objectives could jeopardize the future of LifeStance.

Lead plaintiffs and other individuals who are part of the collective and class members of the lawsuit are all nonphysician employees of LifeStance classified as “Clinicians.” These employees are nonexempt, W2 workers who provide mental health clinical treatment or therapy to children, adolescents, and adults suffering from a variety of mental health issues. The class members currently work or have worked at some point for the company.

LifeStance’s controversial “advance” policy is under scrutiny, and for good reason. The company forces new Clinicians to sign an agreement where they must repay “advanced funds”. But here’s the catch: these advances often fall short in value, are deducted from wages, are predatory in nature, and cause the employees to effectively go “unpaid” for certain pay periods. This suspicious policy is nothing more than an attempt to recoup wages, which is a blatant violation of the law.

In a calculated move, LifeStance disguises all wages paid to clinicians during their first six to twelve months as a loan, conveniently masked as this “advance”. If clinicians fail to meet the company’s obscure performance metrics, they are expected to repay this loan, even if they leave before LifeStance recovers its money. And, unfortunately, there are sky-high interest rates tacked onto employees’ wages in most instances.

Making matters worse, when recruiting their employees, LifeStance conveniently leaves out any mention of this “advance” or the fact that clinicians are required to pay back their salaries if they cannot meet the company’s complicated standards. Their job postings and public disclosures to the SEC fail to disclose that this so-called advance is actually a full repayment expectation if clinicians leave before LifeStance recovers its investment. Prospective clinicians unknowingly walk into a world of indentured servitude, tempted by the promise of a competitive salary. This deceptive wage recovery scheme must not go unnoticed.

LifeStance’s deceitful tactics also extend to the delays and complexities faced by individuals trying to obtain the necessary credentials to join their network. LifeStance was not only aware of these delays, but intentionally hid them as part of their manipulative compensation scheme they label “an advance.” Essentially, LifeStance shifts the burden of their overhead costs onto the very employees they hire, forcing them to bear the risks of accepting employment.

Additionally, LifeStance uses their power to manipulate and pressure Clinicians into resigning, demanding thirty to sixty days’ notice before termination. However, they often discard the Clinician as soon as they can make patient adjustments. This notice period serves as a strategic opportunity for LifeStance to transfer the clinician’s patients to another therapist while also impeding their ability to earn income. In fact, in most cases, clinicians receive little to no income during this period.

LifeStance has been consistently failing to fulfill its promise of paying Clinicians their rightful share of service billing codes. Despite explicit assurances during the recruitment process and in corporate policies and agreements, LifeStance deliberately withholds crucial information about compensation calculation and deductions from Clinicians’ paychecks.

Shockingly, employees’ pay stubs only provide a vague “gross number” without any explanation on how it was determined or whether it was an advance or actual wages. Moreover, vital details regarding deductions related to this “advance” are completely omitted. Numerous complaints from Clinicians to LifeStance’s human resources personnel and management have gone unheard, as the corporation stubbornly refuses to disclose the metrics used to determine their pay.

As a result of LifeStance’s deceitful business practices, Clinicians are unable to earn sufficient patient billing fees to alleviate the overwhelming debt caused by these advances. With the intention of creating a system of indentured servitude, LifeStance manipulates its operations, imposes burdensome metrics on Clinicians, and utilizes financial stress to control their actions.

The fees that Clinicians earn from their vital patient services are unfairly limited, resulting in the accumulation of crushing levels of unsustainable debt.

The lawsuit also highlights the retaliatory actions taken against employees who raised concerns about these unlawful practices. According to the plaintiffs, LifeStance has a culture of silencing dissenting opinions and punishing employees who speak out. This has taken the form of ostracism, verbal harassment, and other forms of retaliation. Such actions are not only unethical but also illegal.

LifeStance is currently facing legal action for the many employment-related violations described by the employee-class members. Additionally, these healthcare professionals argue that LifeStance’s purported “employment agreement” is unconstitutional as it violates their basic human rights and is against public policy. This case raises serious concerns about the treatment of healthcare workers and the exploitation of their services. We must ensure that LifeStance clinics across America are operating ethically and legally, and we stand with those who seek justice and fairness in their workplace.

At éclat Law, our employment law class action lawyers are committed to helping individuals stand up for their rights. Founding Partner Kevin Ross-Andino leads Our team of experienced attorneys understand the complexities of class action lawsuits and have the knowledge and resources required to effectively represent you. Whether you are seeking justice against an employer’s illegal behavior or have been under an unlawful contract, give us a call at (407) 636-7004.

Step One: Find out if you are eligible for compensation because of unpaid wages. Fill out your free case evaluation below today and let us know your story.

Step Two: Our dedicated team of attorneys will review your case evaluation and contact you with any further questions and walk you through the next steps of the process.

Step Three: If eligible, you will be sent an engagement agreement to be represented in the lawsuit by our law firm.

Step Four: After you have signed the engagement agreement, our dedicated team of attorneys will begin working on your case. We may request that you provide documents related to your employment.

Step Five: If eligible, you will join the lawsuit against LifeStance Health Group, Inc. and our attorneys will empower you every step of the way. In the case of a successful result, you will get compensation and the attorneys’ fee is typically deducted from there. Compensation amounts may vary between different individual situations.