The class action suit was filed in the Alameda County Superior Court by former employee Shaun Smith on behalf of them and other employees.
The suit claims that Digirad and MD Office Solutions violated California law by failing to provide off-duty meal and rest breaks and to accommodate accurate wage statements, failing to pay all earned wages in a timely manner and failing to pay all wages upon separation from the companies.
In addition to those claims, Smith asserted individual claims for racial discrimination, retaliation and wrongful termination, according to an SEC filing form Digirad.
The company said it engaged in a voluntary mediation and reached a tentative settlement with the plaintiffs, which was approved last September. In December, the deal won court approval and Digirad paid $1.3 million to settle the suit, according to the filing.