News Brief
US Department of Labor recovers $181K for 70 nurses, assistants denied overtime after Michigan company misclassifies them as contractors
Employers: Reliance Staffing LLC, Fahim Uddin, owner
Actions: Fair Labor Standards Act consent judgment
Courts: U.S. District Court for the Eastern District of Michigan
Investigation findings: On Feb. 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‒ representing $90,765 in overtime wages and an equal amount in liquidated damages ‒ to 70 registered nurses, licensed practical nurses and certified nursing assistants.
An investigation by the U.S Department of Labor’s Wage and Hour Division found that Uddin and Reliance Staffing misclassified their workers as independent contractors when, in fact, they were employees. By doing so, the employer failed to pay overtime wages at time and one-half their hourly rate of pay for hours over 40 in a pay period.
On Sept. 22, 2023, the department filed a complaint in federal court against Reliance Staffing and Uddin, seeking back wages and damages for the employees for violating the overtime provisions of the Fair Labor Standards Act
Under terms of the consent judgment, Uddin and Reliance Staffing will make the back wages payments in installments through Aug. 1, 2024, and 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 Bingham Farms, Michigan, company recruits and employs 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,” explained 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: Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint, including if you think you are misclassified as an independent contractor. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.
Download the agency’s new Timesheet App for iOS and Android devices – also available in Spanish –to ensure hours and pay are accurate.
United States Department of Labor v. Reliance Staffing LLC, Fahim Uddin, owner
