September 29, 2022

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Healthcare Staffing Agency Ordered by Federal Court to Pay Nurses, Aides Far more than $7.2M in Back Wages

2 min read

Steadfast Medical Staffing ‘willfully’ misclassified personnel and shortchanged their additional time fork out, U.S. Office of Labor suggests.

A Norfolk, Virginia, health-related staffing agency that deliberately denied a lot more than 1,000 RNs, accredited sensible nurses (LPNs), and accredited nursing aides their rightfully acquired time beyond regulation wages, has been requested by a federal courtroom to fork out much more than $7.2 million in back wages and liquidated damages.

The U.S. District Court docket for the Jap District of Virginia-Norfolk Division purchased Professional medical Staffing of The us LLC—doing business enterprise as Steadfast Health care Staffing—to pay back at the very least $3,619,716 in again wages and at minimum $3,619,716 in liquidated damages to 1,105 staff, according to a press release from the U.S. Department of Labor.

The court purchased the department’s Solicitor of Labor to update the back wages to the existing, which most likely will maximize the back wages and liquidated damages quantities considerably.

The motion follows an investigation by the U.S. Division of Labor’s Wage and Hour Division and litigation by the Solicitor of Labor.

The Division of Labor’s Wage and Hour Division investigation established that because at minimum August 18, 2015, Steadfast Health-related Staffing, a healthcare field work company that delivers unbiased clinical personnel nationwide, willfully misclassified the nurses and aides as impartial contractors.

By misclassifying the nurses and aides, the health-related staffing agency compensated them straight-time wages in its place of time-and-a-50 % when they labored extra than 40 several hours in a workweek, according to the Department of Labor.

Steadfast Clinical Staffing also unsuccessful to retain correct data of total weekly several hours labored. Both of those actions violated the Honest Labor Specifications Act.

“When businesses misclassify workers as impartial contractors and are unsuccessful to shell out workers their difficult-gained wages, the U.S. Section of Labor will keep them legally accountable,” explained U.S. Secretary of Labor Marty Walsh. “The court’s judgment signifies we can at last recover these crucial workers’ wages.”

The court’s conclusion finishes litigation filed in 2018 and in 2019 by the division just after Steadfast Health-related Staffing refused to pay out back wages owed, and come into compliance after the investigation.

“The courtroom despatched an unequivocal information to Steadfast and other health care field companies that the Solicitor of Labor and the Wage and Hour Division will get the job done collectively to recuperate stolen wages when employers violate the legislation,” stated Solicitor of Labor Seema Nanda.

“The U.S. Department of Labor will not hesitate to deliver authorized motion, pursuing all available cures, when it finds that an employer has willfully violated the legislation.”

Carol Davis is the Nursing Editor at HealthLeaders, an HCPro model.

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