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

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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.

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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.