New York Attorney General Letitia James secured a $660,668.66 judgment against Advanced Care Staffing (ACS) and its CEO Sam Klein for exploiting foreign-born nurses through illegal labor practices.
The agency, ACS, is accused of recruiting nurses from abroad and forcing them into contracts laden with severe financial penalties for early termination, including a $20,000 fee. Since 2020, 71 nurses were subjected to these conditions, resigning over issues like understaffing and mandatory double shifts.
Attorney General James stated, ‘Advanced Care Staffing exploited vulnerable nurses and coerced them into unfair contracts.’ The OAG investigation revealed ACS’ recruitment tactics, including visa sponsorships and transportation costs, entangled with restrictive contracts that lacked proper legal advice for the nurses.
The company also demanded a legal pledge guaranteeing payment of $20,000 for early departure. ACS shifted to arbitration in 2022, but the OAG deemed this an escalation of the penalty. Nurses faced threats of arbitration fees if they resigned or were terminated early, creating an atmosphere of fear and exploitation.
As a result of the investigation, the AG’s office has secured restitution for the affected nurses and required ACS to remove exploitative clauses from its contracts. The OAG concluded that ACS’ actions were part of a pattern of illegal labor trafficking and exploitation within the health care staffing industry.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|Human Trafficking
- Source: Official Source ↗
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