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DOL sues Illinois staffing firm alleging IC misclassification

February 14, 2024

An Illinois staffing firm and its manager face a lawsuit from the US Department of Labor over allegations they misclassified workers as independent contractors.

NurseRight Staffing Agency LLC of Rockford, Illinois, and owner Kwame Adjekum are accused in the lawsuit of misclassifying nurses as independent contractors and not paying them overtime rates, according to the Department of Labor.

The department seeks a total of $140,976 in the lawsuit, representing $70,488 in back wages and an equal sum in liquidated damages for 41 individuals. The suit follows an investigation of NurseRight.

SIA reached out to NurseRight for comment.

The complaint also alleges that the staffing agency failed to make and maintain complete and accurate time and pay records that indicated actual work hours and earned wages on a weekly basis for all employees, all of which violated the Fair Labor Standards Act.

“When employers misclassify workers as independent contractors, they deny them wages due under the Fair Labor Standards Act – such as overtime – and fail to pay employment taxes or workers’ compensation on their behalf,” Tom Gauza, the Wage and Hour district director in Chicago, said in a press release.

-Sanestina Hunter