US sues staffing company for requiring nurses to pay back wages

The Department of Labor has filed a complaint against Advanced Care Staffing and its CEO alleging they forced employees to pay back earned wages if they quit early. 

The lawsuit was filed against the healthcare staffing company and its CEO Sam Klein on March 20 in the U.S. District Court for the Eastern District of New York. 

According to the complaint, the New York-based company used contract terms to require employees to pay back earned wages if they did not work for the company for at least three years. If employees left before their contract expired, the complaint alleges they would be forced into private arbitration that required them to also cover Advance Care Staffing's future profits, attorneys' fees and costs associated with arbitration. 

"These demands would lead to employees being paid less than the federal minimum wage. We are seeking an injunction against this grossly illegal conduct, as well as back wages and liquidated damages for the affected employees," the department said in a March 20 blog post.

The lawsuit makes mention of a former employee's case against Advance Care Staffing. Benzor Shem Vidal quit after three months working as a nurse with the company due to unsafe work conditions. His case claims he was ordered to surrender all earned wages after he resigned. 

Editor's note: Becker's has reached out to Advanced Care Staffing and will update the report if more information becomes available. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars