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 total the owner and firm must pay represents $90,765 in overtime wages and an equal amount in liquidated damages.

SIA has reached out to the attorney for Reliance Staffing and Uddin for comment.

A court complaint had been filed against the Bingham Farms, Michigan-based company in September 2023. 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