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Legs & Regs: Staffing Firm to Pay $12.3 Million

July 30 2012

Maxim Healthcare Services Inc. agreed to pay $12.3 million to settle three federal class action claims alleging it required healthcare and staffing recruiters to work more than 40 hours a week without overtime pay, according to the July 2012 issue of the Legs & Regs Advisor. The report is produced by Staffing Industry Analysts in conjunction with employment law firm Littler Mendelson.

Maxim is a healthcare staffing firm and based in Columbia, Md.

The complaints alleged that the salaried recruiters were improperly classified as exempt from the overtime provisions of the Fair Labor Standards Act, but they did not regularly or customarily perform any exempt functions.

“Healthcare employers should carefully audit their exemption classifications under the FLSA and state wage and hour laws,” according to the Legs & Regs Advisor. “Because of unpredictable hours in the health field, improper exemption classification can expose employers to significant liability for unpaid overtime.

Corporate members of Staffing Industry Analysts can access the full report by clicking here.

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