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ARTICLE · 15 SEPTEMBER 2025

Fourth Circuit Upholds $9M Ruling In Nurse Misclassification Case

In a 2-1 decision on Thursday, July 17, 2025, the Fourth Circuit upheld a $9 million judgment against the medical staffing firm Steadfast Medical Staffing ("Steadfast") for misclassifying more than 1,100 travel nurses...

United StatesEmployment and HR

In a 2-1 decision on Thursday, July 17, 2025, the Fourth Circuit upheld a $9 million judgment against the medical staffing firm Steadfast Medical Staffing ("Steadfast") for misclassifying more than 1,100 travel nurses as independent contractors, denying them benefits such as overtime pay as a result. The lawsuit is the result of a 2017 investigation by the Department of Labor ("DOL") which concluded that the nurses should have been classified as employees under the Fair Labor Standards Act. When Steadfast refused to reclassify the nurses and pay them the overtime compensation they were owed, the DOL filed suit.

This case is expected to shape the way healthcare providers classify their workers, as it focuses on labor classification standards specifically relating to the healthcare field and nurse misclassification.

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