Professional Service Agreement

DOL Recovers $352K in Back Pay for 653 Workers After Staffing Agency Misclassifies Them as Independent Contractors

September 28, 2022

Federal wage investigators have recovered $352,347, in back overtime wages for 653 workers of a Dearborn, Michigan staffing agency that assigned them to manufacturing facilities and illegally classified them as independent contractors. The U.S. Department of Labor’s Wage and Hour Division found Leo Staffing & Management LLC – operating as LTL Staffing and Business Solutions – assigned most of the employees to work as machine operators, welders and forklift drivers at Challenge Manufacturing locations in Walker, Holland and Pontiac. While the employees worked directly at the manufacturing plants, LTL Staffing maintained all employee records and processed their paperwork and payroll. Misclassification of employees as independent contractors is a major concern for the U.S. Department of Labor, and violations associated with misclassification are found all too frequently by Wage and Hour Division investigators.