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The U.S. Department of Labor reports it has obtained a consent judgment recovering 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.

The were entered in the U.S. District Court for the District of Massachusetts on Nov. 25, 2024, against Gate Solution Systems Inc. of Malden, Massachusetts, and Healthcare Services Group Inc. of Bensalem, Pennsylvania.

The department’s Wage and Hour Division said it 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.

The names Gate Solution Systems, certain of its officers and managers, and joint employer Healthcare Services Group, and alleges that Gate Solution Systems hired the employees to provide cleaning, laundry and dietary assistance services, under the supervision of Healthcare Services Group, at various health care facilities.

Topics Agencies