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.
