A Norfolk-based medical staffing agency, Medical Staffing of America LLC (more commonly known as Steadfast Medical Staffing), was ordered by a federal court to pay over $7.2 million in back wages and damages.
The ruling follows an investigation by the U.S. Department of Labor’s (DOL) Wage and Hour Division, litigated by the Solicitor of Labor, Seema Nanda. The investigation found that Steadfast Medical Staffing had intentionally misclassified 1,105 aides and nurses as contract workers instead of full-time employees, which allowed them to pay standard wages instead of the overtime pay the employees earned. Additionally, the agency neglected to properly record the hours its employees worked, a violation of the Fair Labor Standards Act.
“When employers misclassify employees as independent contractors and fail to pay workers their hard-earned wages, the U.S. Department of Labor will hold them legally accountable,” U.S. Secretary of Labor Marty Walsh said.
Thanks to the DOL's efforts, Steadfast Medical Staffing's workers will receive the wages they earned.
The $7.2 million fine that Steadfast Medical Staffing was ordered to pay breaks down to $3.6 million in back wages and $3.6 million in liquidated damages to its employees.
Steadfast Medical Staffing has been misclassifying its employees since at least August 2015, according to the DOL.
