Advanced Care Staffing, an employment company that operates in New York, Connecticut, and New Jersey, is being sued by the Department of Labor (DOL), Insider reported.
The suit, which was filed on March 20, contends that Advanced Care compelled workers to enter into contracts that required them to work a minimum of three years — or pay again their wages. And, the swimsuit provides, Advanced Care compelled workers to pay again wages, plus authorized charges, in the event that they did not.
It was filed within the Eastern District of New York.
“Under this scheme, the pay that ACS promises its employees may be converted into nothing more than a loan that employees must repay with interest and fees,” the swimsuit stated.
In the swimsuit, the DOL stated one worker was requested to pay again what amounted to extra in pay than he ever made on the firm, to cowl charges what Advanced Care known as “future profits,” the DOL claimed.
Companies can not, “workers as insurance, unconditionally guaranteeing a future profit stream for the employer,” the swimsuit famous.
Advanced Care didn’t reply instantly to Entrepreneur’s request for remark.
But David N. Kelley, whose agency is performing as illustration on the case, advised Insider the contentions had been “unsupported by either the facts or the law.”
Kelley stated the corporate supplied contracts for nurses from exterior the U.S. to come back to the nation and work and coated issues like immigration and housing prices, with the contractual discount being workers would stick with Advanced Care for 3 years.
“To be clear, ACS has never demanded – and no nurse has ever repaid – their earned wages to ACS,” Kelley added to the outlet.
Kelley is an attorney on the agency Dechert with expertise with high-power litigation with regulators, per his firm bio.