Walsh v. Med. Staffing of Am., LLC
| Citation | 580 F.Supp.3d 216 |
| Decision Date | 13 January 2022 |
| Docket Number | Case No. 2:18–cv–226, Case No. 2:19–cv–475 |
| Parties | Martin J. WALSH, Secretary of Labor, United States Department of Labor, Plaintiff, v. MEDICAL STAFFING OF AMERICA, LLC, d/b/a Steadfast Medical Staffing, and Lisa Pitts, Defendants. |
| Court | U.S. District Court — Eastern District of Virginia |
Ryma Naje Lewis, Chervonti Jones, Pro Hac Vice, Mohamed Elnour Seifeldein, U. S. Department of Labor Office of the Solicitor, Arlington, VA, for Plaintiff.
Joshua Lee Jewett, Julia Amato Rust, Aaron Daniel Siegrist, Pierce McCoy, PLLC, Patrick Hugh O'Donnell, Kaufman & Canoles PC, Norfolk, VA, Christopher D. Davis, Davis Law, PLC, Chesapeake, VA, for Defendant Medical Staffing of America, LLC, Lisa Ann Pitts.
The Court issues this Memorandum Opinion and Order after a bench trial in the above-styled matter to resolve the U.S. Department of Labor's ("Plaintiff" or "DOL") claims against Medical Staffing of America, LLC, d/b/a Steadfast Medical Staffing, and Lisa Pitts ("Defendants") for failing to pay overtime and maintain pay records in accordance with the Fair Labor Standards Act ("FLSA"), as amended, 29 U.S.C. § 201, et seq. For the reasons below, the Court FINDS that the nurses employed by Defendants are employees of Defendants. Accordingly, the Court FINDS Defendants liable for violating the FLSA and enters judgment for Plaintiff.
On May 2, 2018, Plaintiff filed the Complaint in this matter, initiating an enforcement action against Defendants for willfully misclassifying their workers as independent contractors and violating the FLSA. Complaint ("Compl."), ECF No. 1. Defendants answered the Complaint on July 11, 2018. Answer, ECF No. 8. On July 23, 2020, after full briefing by the parties, the Court denied the parties’ cross-motions for summary judgment. Summary Judgment Order ("Summ. J. Or."), ECF No. 251. The Court held a bench trial, which commenced on August 31, 2021. Note, ECF No. 301–311. The parties filed post-trial briefs, and this matter is now ripe for judicial determination. The Court issues the following Findings of Fact and Conclusions of Law, as required by Rule 52(a) of the Federal Rules of Civil Procedure.
The parties have stipulated to the following facts, which the Court accepts and finds:
The Court makes the following additional factual findings (unless otherwise noted, the facts below are reflective of Defendants’ business practices since August 18, 2015):
test; (4) has the nurse sign a Health Insurance Portability and Accountability Act ("H1PAA") compliance form; and (5) confirms that the nurse has a negative COVID test or proof of vaccination. Tr. at 246:3–10, 282:2–19, 289:24–25, 290:1–2, 916:24–917:11; J. Pretrial Statement at 2.
16. Once a nurse applies and passes the credentialing process, Steadfast enters into an "independent contractor" agreement with the nurse and adds the nurse to its registry. Tr. at 522:11–17, 1009:8–10; PX 25.
17. Nurses must obtain and maintain their own licensure. Tr. at 83:23-25, 84:15–18, 99:5–10, 184:24–185:4, 211:6–17. Steadfast does not pay for or reimburse nurses for licensing or educational expenses. Tr. at 83:4–8.
18. Once a nurse is added to Steadfast's registry, Steadfast trains the nurse on the following topics: HIPAA compliance, substance abuse, and harassment. Tr. at 66:7–25; PX-32.
19. The nurses are also covered under Steadfast's insurance policy, and Steadfast is responsible for processing all workers’ compensation claims for any injuries the nurses incur while working at a facility. Tr. at 42:25–43:15; PX-28.
20. Steadfast does not have an "employee handbook." Tr. at 919:15–16.
21. Nurses on Steadfast's registry are required to wear badges bearing the name, "Steadfast Medical," while working at client-facilities. Tr. at 72:16–73:3, 99:25–100:5, 124:14–20.
22. Steadfast does not provide the nurses with any equipment. Tr. at 84:1–14, 98:8–16, 635:1–3, 682:19–21, 700:16–19, 812:5–8.
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