A staffing firm in Dearborn, Michigan, repaid $352,347 in back wages to 653 temporary workers after misclassifying them as independent contractors, the US Department of Labor announced Friday.
The company, Leo Staffing and Management LLC — which operates as LTL Staffing and Business Solutions — had assigned the workers to manufacturing roles, according to the department. They worked as machine operators, welders and forklift operators at Challenge Manufacturing locations in the Michigan cities of 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 US Department of Labor, and violations associated with misclassification are found all too frequently by Wage and Hour Division investigators,” said Angela Telang, acting Wage and Hour district director in Detroit. “We can assist employers and workers in determining if a worker should be classified as an independent contractor or as an employee.”