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 workers to enter into contracts that required them to work a minimum of three years — or pay again their wages. And, the swimsuit provides, Superior Care compelled workers 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 workers could also be transformed into nothing greater than a mortgage that workers should repay with curiosity and charges,” the swimsuit mentioned.
Within the swimsuit, the DOL mentioned 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 known as “future income,” the DOL claimed.
Firms can’t, “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 mentioned the corporate offered 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 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.