In a substantial win for labor rights, New York Attorney General Letitia James has announced a resolution that grants over $660,000 to foreign-recruited nurses who were victimized by the exploitive practices of a healthcare staffing agency. According to a recent press release by the Office of the Attorney General (OAG), Advanced Care Staffing and Priority Care Staffing, led by CEO Sam Klein, required nurses to sign contracts laced with severe penalties for early resignation.
The investigation uncovered that the agency had managed to illegally collect "termination penalties" reaching up to $20,000 from 71 nurses who felt compelled to resign due to dire working conditions. These conditions included unsustainable staff-to-patient ratios and near-constant double shifts. The OAG has not just secured refunds for these nurses but also issued mandates to prevent future transgressions. "Advanced Care Staffing exploited vulnerable nurses, had them sign unfair contracts, and forced them to pay illegal financial penalties," Attorney General James said. "Nurses are the backbone of our health care system, and they deserve fair and just treatment," she asserted in the statement obtained by the Office of the Attorney General.
Since 2013, ACS had solicited trained nurses internationally, sponsoring visas and other immigration expenses, while failing to fully inform them about the repressive terms of their contracts. These contracts not only demanded hefty fines but initially also required a legal pledge to ensure the payment of such fines upon early contract termination. Although the practice of requiring this guarantee ceased in 2022, the agency continued to use heavy-handed arbitration tactics to uphold the same type of financial burdens on the nurses.
The OAG’s report outlines serious concerns about the working conditions at ACS, highlighting that many nurses feared losing their licenses due to substandard patient care caused by insufficient staffing. Some nurses were pressured into paying contractual penalties, which varied in amount but were often substantial. The agency is now required to cancel any outstanding debt owed by former nurses, revise its contracts to eliminate mandatory arbitration clauses, and work collaboratively to ensure employees are better informed about their legal rights.
Fulfilling the settlement, ACS is to remunerate the affected nurses and reform its contract policies, significantly capping future financial penalties and eradicating illegal non-compete clauses. A compliance program, including a designated officer, will be put in place to maintain adherence to employment laws. Periodic training detailing workers' rights, facilitated by a community organization, is also expected as part of the reformation process negotiated by Attorney General James.
This case adds to a series of victories reported by Attorney General James' office in the battle against exploitative labor practices in various sectors. Previous triumphs include large settlements and structural changes for employees in utilities, delivery services, and health care. Each of these cases was handled by members of the Attorney General's Labor Bureau, part of the Division for Social Justice, which aims to ensure fair workplace practices and the protection of employee rights across New York State.
