George Washington University Hospital in Washington, D.C. — part of King of Prussia, Pa.-based Universal Health Services — has agreed to settle allegations that it illegally required newly licensed nurses to repay training costs if they left before completing a two-year commitment, according to a Nov. 8 news release from District of Columbia Attorney General Brian Schwalb.
The 395-bed medical center will pay $112,000 to resolve claims that, from Jan. 1, 2020, through July 1, 2023, it used training repayment agreement provisions, commonly known as TRAPs, that violated the district’s antitrust laws, ban on noncompete agreements, and wage and hour laws. Most of the cash settlement will reimburse affected employees, while $15,000 will go to the district as a penalty.
Mr. Schwalb said an investigation by his office found that GWU Hospital illegally required certain nurses — primarily newly licensed or recent graduates — to repay training costs of up to $7,500 if they resigned before completing a two-year commitment. His office said the hospital enforced this provision through paycheck deductions and payment requests, and referred some nurses to collections when repayments were not made.
As part of the settlement, GWU Hospital has agreed to:
- Provide $96,998.40 in restitution to affected nurses
- Notify affected nurses that the repayment clause is void and unenforceable
- End all open collections efforts related to these provisions
- Notify the district if it seeks to implement a similar repayment program for nurses within the next three years
During the investigation, Mr. Schwalb said GWU Hospital ceased requiring new nurses to sign repayment agreements.
When reached by Becker’s, a UHS spokesperson declined to comment.
Read the full settlement here.
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