The US Department of Labor has obtained a consent judgment and order in federal court that recovers a total of more than $2.4 million in back wages and liquidated damages from Massachusetts and Pennsylvania healthcare staffing agencies that denied 341 employees overtime wages, including employees misclassified as independent contractors. Entered in the US District Court for the District of Massachusetts on Nov. 25, 2024, the consent judgment and order requires Gate Solution Systems Inc. of Malden, Massachusetts, and Healthcare Services Group Inc. of Bensalem, Pennsylvania, to pay a total of over $2.4 million as a result of the violations.
The department’s Wage and Hour Division found that Gate Solution Systems Inc. misclassified housekeepers, laundry, and dietary workers as independent contractors. The employees in this case provided services at healthcare facilities in Maine, Massachusetts, New Hampshire, and Vermont. Employees were not paid the required overtime rate when they worked more than 40 hours in a workweek. In addition to paying back wages and liquidated damages to the affected employees, the consent judgment enjoins Gate Solution Systems and its officers and managers from future Fair Labor Standards Act violations, including failing to maintain employment records.
