A federal court in Virginia ordered a Norfolk-based medical staffing agency, that worked with nursing homes and others across the healthcare continuum, to pay more than $7.2 million in back pay and liquidated damages after it was found to have intentionally violated federal laws by denying 1,105 health care workers overtime wages.
The defendant, Medical Staffing of America LLC – doing business as Steadfast Medical Staffing — was ordered to pay at least $3,619,716 in back wages and at least $3,619,716 in liquidated damages to the employees. The final amount is expected to be higher, according to a Department of Labor news release announcing the judgment.
“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 in the release. “In this case, Medical Staffing of America LLC willfully violated the law and shortchanged more than 1,100 aides and nurses of their rightful wages. The court’s judgment means we can finally recover these essential workers’ wages.”
In addition to nursing homes, Steadfast Medical Staffing works with assisted living facilities, group homes, hospitals, physician offices, urgent care, rehab facilities, home health agencies, dialysis centers, medical clinics and correctional facilities.
The ruling comes as staffing agencies have faced intense scrutiny from the long-term care sector in recent...
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