Superior Care Staffing, an employment company that operates in New York, Connecticut, and New Jersey, is being sued by the Division of Labor (DOL), Insider reported.
The swimsuit, which was filed on March 20, contends that Superior Care compelled staff to enter into contracts that required them to work at the least three years — or pay again their wages. And, the swimsuit provides, Superior Care compelled staff to pay again wages, plus authorized charges, in the event that they did not.
It was filed within the Jap District of New York.
“Underneath this scheme, the pay that ACS guarantees its staff could also be transformed into nothing greater than a mortgage that staff should repay with curiosity and charges,” the swimsuit stated.
Within 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 Superior Care referred to as “future income,” the DOL claimed.
Corporations can not, “staff as insurance coverage, unconditionally guaranteeing a future revenue stream for the employer,” the swimsuit famous.
Superior Care didn’t reply instantly to Entrepreneur’s request for remark.
However David N. Kelley, whose agency is appearing as illustration on the case, informed Insider the contentions had been “unsupported by both the info or the regulation.”
Kelley stated the corporate supplied contracts for nurses from exterior the U.S. to return to the nation and work and coated issues like immigration and housing prices, with the contractual cut price being staff would stick with Superior Care for 3 years.
“To be clear, ACS has by no means demanded – and no nurse has ever repaid – their earned wages to ACS,” Kelley added to the outlet.
Kelley is an legal professional on the agency Dechert with expertise with high-power litigation with regulators, per his firm bio.