FOLLOW US

America July 19, 2025 4 mins read

Split Fourth Circuit Upholds $9M Medical Staffing Ruling in Nurse Misclassification Showdown

America ı By Rihem Akkouche

0 Comments

$9M medical Staffing Ruling

In a fierce legal battle that may reshape labor classification standards in the healthcare sector, the Fourth Circuit Court of Appeals on Thursday refused to overturn a $9 million judgment against Medical Staffing of America—doing business as Steadfast Medical Staffing—for misclassifying over 1,100 nurses as independent contractors.

The 2-1 decision upheld a district court’s sweeping ruling, aligning with the U.S. Department of Labor (DOL) and rejecting Steadfast’s argument that the court used improper testimony and inappropriately shifted the burden of proof.

“This is not a matter of error—this is a matter of evidence,” Judges Robert B. King and Henry F. Floyd wrote in a 103-page published opinion. “The company is merely attempting to magnify supposed flaws far beyond their true significance.”

Majority Sides with Labor Department on All Fronts

The core of the dispute lies in the economic realities test, a six-factor measure used to determine employment classification. The panel majority meticulously affirmed that the district court properly weighed each factor and justifiably concluded the nurses were indeed employees—not contractors.

The evidence painted a vivid picture: Steadfast set pay rates, dictated schedules, monitored performance, and initiated disciplinary actions. These actions, the court ruled, gave the company the operational control typical of an employer.

One of the most damning findings was Steadfast’s noncompete clause, which barred nurses from working elsewhere, a clear marker of economic dependence, the court said.

The judges also dismissed Steadfast’s claim that nurses’ personal investments—like paying for their own licenses—proved independence. “That’s a requirement of the profession, not an employer-employee litmus test,” the court noted.

Richardson’s Lone Dissent: “A Veneer of Respectability”

U.S. Circuit Judge Julius N. Richardson, however, issued a sharp dissent, accusing his colleagues of overlooking critical testimony and stretching the test’s logic “so far it could apply to almost any economic arrangement.”

“These nurses are in business for themselves,” Richardson countered. “Their pay and success were determined by their performance—evaluated by clients, not Steadfast.”

He warned that the majority’s approach stripped Steadfast of its most compelling evidence, claiming it set a dangerous precedent that blurred the lines of contractual autonomy.

Good Faith Defense Falls Flat

Steadfast had hoped a partial good faith defense—based on limited legal consultations—would reduce liability. But the court was unconvinced, highlighting that the company sought legal advice only after the DOL launched its investigation and failed to follow its attorney’s recommendations.

“A good faith defense demands serious, proactive compliance—not belated, selective listening,” the panel ruled.

Appeal History and Final Outcome

This marks the second time the case has climbed to the Fourth Circuit. Initially, in May 2023, the court vacated an injunction imposed in 2022. But after the case returned to the district court, the ruling stood firm.

In September, a permanent injunction was issued, followed by a December judgment ordering the $9 million payout after clarifying back pay disputes.

Steadfast challenged both decisions, which were consolidated for this final appeal. Thursday’s ruling closes that chapter with a gavel strike heard across the staffing industry.

Legal Teams and Silence from Both Camps

The DOL was represented in-house by Anne W. King, Rachel Goldberg, and Jennifer S. Brand, while Steadfast was represented by Abram J. Pafford of McGuireWoods LLP.

As of Friday, no comments were made by either party’s representatives. But the implications are already resonating beyond the courtroom.

This case stands as a defining moment in labor law enforcement, particularly in sectors relying on contractor models. Employers navigating worker classification would be wise to view this ruling not as a whisper—but as a roaring siren.

Previous Article

Trump Sues Wall Street Journal for $10 Billion

Read More
4594 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America November 06, 2026 Jay Rockefeller, Former West Virginia Governor, dies at 89 By – Rachel Moore
America November 6, 2026
Meghan Markle’s Father , Thomas Markle,…

Thomas Markle, the estranged father of Meghan, Duchess of Sussex,…

By – Rachel Moore
America November 6, 2026
2 People found shot in the…

A deadly shooting inside a Manhattan senior housing facility has…

By – Rachel Moore
America November 6, 2026
Tesla to end Cybertruck production as…

Tesla’s futuristic Cybertruck, a stainless-steel electric pickup that once promised…

By – Rachel Moore
America November 6, 2026
Federal Court Rejects LendingTree Arbitration Clause…

Key Legal Findings That Could Affect Millions of Online Contracts…

By – Samuel Lopez
America November 6, 2026
DOJ Launches Super Intelligence Task Force…

Inside Washington’s New Super Intelligence Crackdown The Justice Department is…

By – Samuel Lopez
America November 6, 2026
Hackers Target French Blood Banks In…

By Samuel Lopez – USA Herald A cyberattack targeting blood-storage…

By – Samuel Lopez
America November 6, 2026
“You’ll Know Soon Enough”: Trump Says…

Trump says he may "have to" destroy the rest of…

By – Derek Johnson
America November 6, 2026
Newsom Commutes All 548 California Death…

Gov. Gavin Newsom will commute all 548 California death sentences…

By – Derek Johnson
America November 5, 2026
Stock Market Reverses Post-Election Rally as…

NEW YORK — The Stock Market suffered a dramatic reversal…

By – Jackie Allen
America November 5, 2026
AI Stock Selloff Erases $2.5 Trillion…

NEW YORK — Wall Street suffered a massive AI stock…

By – Michallie K Harrison
America November 5, 2026
‘Golden Age’ Playbook Fails Its Own…

AUBURN – Tommy Tuberville wants Alabama to believe that smaller…

By – Michallie K Harrison
America November 5, 2026
Artemis II Left a 3,100-Mile Atmospheric…

NASA’s Artemis II mission produced upper-atmosphere disturbances extending more than…

By – Michallie K Harrison
America November 5, 2026
Hegseth Impeachment: Massie Demands Resignation or…

WASHINGTON — Rep. Thomas Massie says he will revive his…

By – Michallie K Harrison
America November 5, 2026
Trump Allies Break Ranks After Midterm…

WASHINGTON — Trump allies are publicly blaming the president’s decisions…

By – Michallie K Harrison
America November 5, 2026
Victoria’s Secret ‘PINK’ US TM Case:…

Victoria’s Secret has secured a significant legal victory in its…

By – Rachel Moore
America November 5, 2026
Netflix Releases  True-Crime Thriller Into Top…

By Jackie Allen | USA Herald A disturbing true-crime story…

By – Jackie Allen
America November 5, 2026
AI Flagged Bias in Trump Climate…

WASHINGTON — Researchers on a Trump climate panel asked Microsoft…

By – Michallie K Harrison
America November 5, 2026
Russell Brand Convicted of Rape, Taken…

LONDON — Russell Brand was convicted of rape and three…

By – Michallie K Harrison
Breaking News November 6, 2026
Paraguay’s President Resigns as Ueno Bank…

President Santiago Peña resigned after Ueno Bank's collapse locked nearly…

By – Derek Johnson
America November 5, 2026
Dallas Cowboys Face  Crisis After Crushing…

By Jackie Allen | USA Herald The Dallas Cowboys are…

By – Jackie Allen
America November 5, 2026
Sister Wives Shake-Up: Janelle Brown Reveals…

By Jackie Allen | USA Herald Janelle Brown’s latest revelation…

By – Jackie Allen
America November 4, 2026
Mars: Newly Discovered Volcanic Activity Raises…

New findings from a European Space Agency spacecraft suggest that…

By – Jackie Allen
America November 4, 2026
WNBA: DeWanna Bonner Makes Emotional Admission…

ATLANTA — The WNBA Finals ended in heartbreak for the…

By – Jackie Allen
America November 4, 2026
3M $7.35 Billion PFAS Settlement Targets…

3M Co. is committing $7.35 billion over nine years to…

By – Rachel Moore
America November 3, 2026
Supreme Court Takes Up Colorado Preschool…

What the Justices Must Decide Colorado says every publicly funded…

By – Samuel Lopez
America November 2, 2026
California Botox Doctor Gets 15 Years…

What the Medicare Records Revealed A California doctor billed more…

By – Samuel Lopez
America October 31, 2026
A New 2026 Twin Study Revives…

Three Takeaways Identical twins and triplets were separated through adoption…

By – Samuel Lopez
America October 28, 2026
Michigan Double-Digit Health Insurance Hikes Set…

Michigan residents are facing another costly year for health coverage,…

By – Tyler Brooks
America October 28, 2026
Miyoko Plant Butter Recall Sparks Food…

A plant-based butter product distributed across 10 states is being…

By – Rachel Moore
America October 28, 2026
Pentagon Ketamine Contract: $41M Deal Under…

WASHINGTON — The Pentagon has awarded a Singapore-based pharmaceutical company…

By – Michallie K Harrison
America November 4, 2026
Inés Gómez Mont Arrested by ICE…

MIAMI —  Inés Gómez Mont, a former television personality who…

By – Jackie Allen
America October 31, 2026
Bill Belichick and Jordon Hudson Reportedly End…

Bill Belichick and Jordon Hudson reportedly ended their romantic relationship…

By – Jackie Allen
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison
America October 23, 2026
Connor Hellebuyck Traded to New Jersey…

The New Jersey Devils have made a major move to…

By – Tyler Brooks
America October 19, 2026
Information Ecosystem: Five Tools to Detect…

The information ecosystem is increasingly vulnerable to misinformation. There are…

By – Jackie Allen
America October 19, 2026
An Airman Died After a Pregame…

By Michallie K. Harrison | Opinion Tech. Sgt. Ian Patterson’s…

By – Michallie K Harrison

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter