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A federal judge has given preliminary approval to a $75,000 settlement resolving claims that a North Carolina hospital unlawfully deducted meal breaks from nurses’ pay, shorting them on overtime compensation.

U.S. District Judge Terrence W. Boyle signed off Tuesday on an initial settlement agreement between nurse Denia Wilburn and Onslow Memorial Hospital Inc., bringing toward resolution claims under the Fair Labor Standards Act and the North Carolina Wage and Hour Act.

“The proposed settlement is within the range of possible final approval,” Judge Boyle wrote in his order.

As part of the ruling, the court conditionally certified a settlement-only collective consisting of 32 non-exempt nurses, assistants and technicians who worked overnight shifts in the hospital’s maternal child unit between August 2023 and September 2025.

The parties jointly moved for approval of the agreement on Dec. 12. Under the proposed terms, $55,000 will be distributed to participating workers, with $15,000 allocated for attorneys’ fees and litigation costs.

Eligible employees who opt into the settlement would receive compensation equal to one hour of pay, representing two missed meal breaks, for every two-week period worked. Individual payouts are capped at $2,000.

Wilburn filed the lawsuit in May, alleging the hospital maintained a policy of automatically deducting 30 minutes per shift for meal breaks, even when nurses and technicians were required to remain on duty or were routinely interrupted during those breaks.

According to the complaint, the practice resulted in unpaid overtime and off-the-clock work, violating both federal and state wage laws.

The settlement still requires final approval from the court. Representatives for both sides did not respond to requests for comment.

Wilburn is represented by Carl A. Fitz of Fitz Law PLLC and Bert Joseph Miano of Miano Law PC. Onslow Memorial Hospital is represented by Thomas Cullen Stafford of Wyrick Robbins Yates & Ponton LLP.

The case is Wilburn v. Onslow Memorial Hospital Inc., case number 7:25-cv-00797, in the U.S. District Court for the Eastern District of North Carolina.