A healthcare staffing firm and its owner must pay $181,531 after misclassifying nurses as independent contractors, the US Department of Labor announced Feb. 5.

Reliance Staffing LLC and owner Fahim Uddin allegedly misclassified 70 registered nurses, licensed practical nurses and certified nursing assistants as independent contractors, according to the Department of Labor.

The $181,531 represents $90,765 in overtime wages and an equal amount in liquidated damages.

Reliance Staffing sent this statement to SIA:

“Reliance Staffing, Inc. is pleased to announce the amicable resolution of the recent claim brought against it by the US Department of Labor. The DOL alleged improper employee classification and a failure to properly pay overtime. We are committed to maintaining the highest standards in our operations and are pleased to put this matter behind us. As part of the resolution, Reliance Staffing has cooperated fully with the DOL to address any concerns raised. We have reviewed our employee classification practices and overtime payment procedures to ensure they align with all applicable laws and regulations. Our commitment to compliance and fair treatment of our employees remains unwavering.

“‘We are pleased to have resolved this matter with the DOL amicably. Our top priority has always been our employees’ welfare and ensuring they are compensated fairly,’ said Fahim Uddin, CEO of Reliance Staffing. Although Reliance Staffing is no longer in business, Mr. Uddin remains committed to maintaining a strong and transparent relationship with the employees and government agencies in the other companies he owns within the healthcare space. We are grateful for the support of our valued employees, clients and partners throughout this process.”

A court complaint had been filed against the Bingham Farms, Michigan-based company in September 2023, according to the Department of Labor. A federal judge entered a consent judgment in this case on Feb. 2. Under the judgement, Uddin and Reliance Staffing will make the back-wage payments in installments through Aug. 1. They must also provide employees with Wage and Hour Division fact sheets and verify that the division’s workers’ rights posters are posted and visible at each of their locations.

“The resolution of this case will restore hard-earned wages denied to employees of Reliance Staffing who performed demanding care work,” Wage and Hour District Director Timolin Mitchell said in a press release. “When employers misclassify workers as independent contractors, they do not pay applicable employment taxes or workers’ compensation on their behalf, and they deny them protections under the Fair Labor Standards Act.”

United States Department of Labor, Secretary of v. Reliance Staffing LLC, et al, US District Court for the Eastern District of Michigan, 2:23-cv-12412-SFC-APP

Update: This story has been updated with comment from Reliance Staffing.