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The U.S. Department Of Labor Obtains Judgment To Recover $9.3 Million In Back Wages, Damages For 1,756 Workers Misclassified By A Staffing Company In Philadelphia

Published Thursday, September 29, 2022
by USDOL News
The U.S. Department Of Labor Obtains Judgment To Recover $9.3 Million In Back Wages, Damages For 1,756 Workers Misclassified By A Staffing Company In Philadelphia

(PHILADELPHIA, PENNSYLVANIA) – The U.S. Department of Labor (USDOL) has obtained a consent judgment that will recover $9.3 million in back wages and liquidated damages for 1,756 Employees of a Philadelphia Health Care Staffing Company that misclassified them and willfully denied their hard-earned overtime pay.

Obtained by the USDOL’s Office of the Solicitor in Philadelphia, the judgment in the U.S. District Court for the Eastern District of Pennsylvania requires U.S. Medical Staffing Incorporated 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 September 2nd (2022).

“This consent judgment makes clear to all Health Care Industry employers that just like U.S. Medical Staffing, they will be held accountable when they fail to pay Employees their legally earned wages,” Solicitor of Labor Seema Nanda said. “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 USDOL’s Wage and Hour Division that found - from at least September 24th, 2017 through at least May 22nd, 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 over 40 in a work-week, in violation of the Fair Labor Standards Act (FLSA).

In addition, in some cases, investigators determined the employer claimed falsely to be a registry through which the company’s clients solely employed the Workers.

In other cases, U.S. Medical Staffing misclassified Employees as Independent Contractors.

U.S. Medical Staffing provides Staff to various agencies, including schools and group homes for individuals with disabilities.

The Employees worked in numerous occupations, including Direct Support and Intellectual Disabilities Professionals, Residential Aides, Personal Care Assistants, Home Health Aides and Licensed Practical Nurses. 

U.S. Medical Staffing Inc. provides Mental Health, Behavioral Health and School Staffing to clients throughout the State of Pennsylvania in Berks, Bucks, Chester, Delaware, Lehigh, Montgomery, Northampton and Philadelphia Counties.

To Continue Reading This Labor News Report, Go To: www.dol.gov/newsroom/releases/whd/whd20220927

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