Covid testing provider pays $142,360 to 65 workers in IC misclassification case


A California-based on-site Covid testing provider has paid $142,360 in back overtime wages to 65 Oklahoma healthcare workers after misclassifying them as independent contractors, the US Department of Labor announced Thursday.

An investigation by the department’s Wage and Hour Division found Inspire Diagnostics LLC, a subsidiary of healthcare services company Inspire Health Alliance, denied overtime wages, benefits and protections to employees who tested people for coronavirus in tents, hotel rooms and other public spaces at the height of the pandemic. The company also failed to pay the affected employees the additional half-time regular rate of pay for overtime hours worked than required by the Fair Labor Standards Act, according to the department.

Inspire Health Alliance is a managed services company and healthcare industry consultant.

“Misclassifying employees as independent contractors denies workers their full wages and other employment benefits and protections. It also gives employers an unfair competitive advantage and harms the economy,” said Wage and Hour Division District Director Michael Speer. “While misclassification is a common practice in the healthcare industry, employers must understand and comply with the law to make sure workers are paid properly.”