Department of Labor has retrieved $181,000 for 70 nurses and assistants who were wrongfully denied overtime pay due to a Michigan company incorrectly labeling them as contractors.

Employers: Reliance Staffing LLC, Fahim Uddin, owner

Actions: Consent Judgment for Violation of Fair Labor Standards Act

Court: U.S. District Court for the Eastern District of Michigan

Investigation Findings: On February 2, 2024, Judge Sean F. Cox in the U.S. District Court for the Eastern District of Michigan entered a consent judgment requiring Reliance Staffing LLC and its owner, Fahim Uddin, to pay a total of $181,531 to 70 registered nurses, licensed practical nurses, and certified nursing assistants. This amount represents $90,765 in overtime wages and an equal amount in liquidated damages.

The U.S. Department of Labor’s Wage and Hour Division conducted an investigation and found that Uddin and Reliance Staffing misclassified their workers as independent contractors instead of employees. This misclassification resulted in the employer failing to pay overtime wages at time and one-half their hourly rate for hours worked over 40 in a pay period. As a result, the department filed a complaint against Reliance Staffing and Uddin on September 22, 2023, for violating the overtime provisions of the Fair Labor Standards Act.

Under the terms of the consent judgment, Uddin and Reliance Staffing will make back wage payments in installments through August 1, 2024. They are also required to provide employees with Wage and Hour Division fact sheets and ensure that the division’s workers’ rights posters are visible at all of their locations. Reliance Staffing, located in Bingham Farms, Michigan, specializes in recruiting and employing registered nurses, licensed practical nurses, and certified nursing assistants.

Quote: “The resolution of this case will restore hard-earned wages denied to employees of Reliance Staffing who performed demanding care work,” stated Wage and Hour District Director Timolin Mitchell in Detroit. “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.”

“The Department of Labor is committed to ensuring workers receive their rightfully earned pay,” added Regional Solicitor Christine Heri in Chicago. “We will use all legal tools necessary to compel employers to abide by the law.”

Background: To learn more about the Wage and Hour Division, including a search tool for back wages and how to file a complaint online, visit their website. Employees and employers can also call the agency’s toll-free helpline at 866-4US-WAGE (487-9243) for confidential compliance assistance. The agency has also released a new Timesheet App for iOS and Android devices, available in both English and Spanish, to help ensure accurate hours and pay.

Case Information: United States Department of Labor v. Reliance Staffing LLC, Fahim Uddin, owner, Case number 1:2.  

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