US Department of Labor recovers $181K for 70 nurses, assistants denied overtime after Michigan company misclassifies them as contractors

Summary:

A consent judgment was entered on February 2, 2024, in the U.S. District Court for the Eastern District of Michigan, requiring Reliance Staffing LLC and its owner, Fahim Uddin, to pay $181,531 in back wages and liquidated damages to 70 employees, comprising registered nurses, licensed practical nurses, and certified nursing assistants. The investigation by the U.S. Department of Labor's Wage and Hour Division found that Reliance Staffing misclassified its workers as independent contractors, resulting in failure to pay overtime wages. The company must make payments in installments through August 1, 2024, and provide employees with fact sheets and verify that workers' rights posters are posted at each location. This settlement aims to restore hard-earned wages denied to employees and ensures compliance with the Fair Labor Standards Act.