The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them $9.3 million in back pay and liquidated damages under the Fair Labor Standards Act.

Background

Medical Staffing of America, LLC (known as “Steadfast Staffing”) has a registry of nurses “and it connects those nurses with work opportunities at its client healthcare facilities.”

In 2017, the U.S. Department of Labor began an investigation regarding the “employee” status of the Steadfast nurses and then began enforcement action, alleging that the nurses were willfully misclassified as “independent contractors” since at least August 2015.

According to the Fourth Ci

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