PHILADELPHIA – The U.S. Department of Labor has obtained a consent judgment that will recover $9.3 million in back wages and liquidated damages for 1,756 employees of a Philadelphia healthcare staffing company that misclassified them and willfully denied their hard-earned overtime pay.
Obtained by the department’s Office of the Solicitor in Philadelphia on Sept. 26, 2022, the judgment in the U.S. District Court for the Eastern District of Pennsylvania requires U.S. Medical Staffing Inc. to pay $4,650,000, in back wages and an equal amount in liquidated damages, and a civil money penalty of $700,000, for the willful nature of its violations. The action follows a complaint the department filed on Sept. 2, 2022.
“This consent judgment makes clear to all healthcare industry employers that just like U.S. Medical Staffing, they will be held accountable when they fail to pay employees their legally earned wages,” said Solicitor of Labor Seema Nanda. “The U.S. Department of Labor is prepared to use every tool available, including litigation, to prevent employers from violating workers’ rights.”
The judgment follows an investigation by the department’s Wage and Hour Division that found – from at least Sept. 24, 2017, through at least May 22, 2022 – the employer willfully denied the affected employees their overtime pay. The division determined U.S. Medical Staffing paid the employees straight time for all hours worked and failed to pay time and one-half the required rate for hours...
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