Filipino Nurses Sue United Staffing Registry Over Illegal “Buy Out” Clauses in Their Employment Contracts

Filipino nurses have filed a class action lawsuit against United Staffing Registry, Inc. and its owner Benjamin H. Santos.

The lawsuit seeks compensatory and punitive damages for Filipino nurses who paid the company thousands of dollars in “liquidated damages” to buy out their contracts.  The lawsuit also seeks compensation for nurses who were not paid the proper wages for all the hours they worked.

​The nurses point to a recent case against the Sentosa group of nursing homes.  In that case, a federal court found that a similar liquidated damages clause was illegal and unenforceable.  Sentosa agreed to settle that case for $3 million.

​Did you pay thousands of dollars to "buy out" your contract?
You may be entitled to reimbursement plus interest.
Call The Howley Law Firm today for a free and confidential consultation.

Call (212) 601-2728

A Federal Judge Has Ruled that Filipino Nurses May Proceed with Claims that the "Buy Out" Clauses are Illegal

United Staffing tried to have the case dismissed, but a Federal Judge found that the complaint is sufficient to state claims against the company and its owner for breach of contract and violations of the Trafficking Victims Protection Act (“TVPA”).

The Judge noted that “United Staffing’s contracts impose $15 in liquidated damages for each hour or part of an hour of the 6,000-hour requirement that an employee may fail to complete.  Thus, if a nurse left United Staffing before completing any work, she would owe $90,000; if the nurse left after completing 2,000 hours of work over the course of one year, she would owe $60,000; and if the nurse left after completing 4,000 hours of work over the course of two years, she would still owe $30,000.”

Based on these and other facts, the Judge found that the “complaint sufficiently and plausibly alleges that the liquidated damages provision threatens serious harm to the Nurse Plaintiffs.”  She noted that in the Sentosa case that recently settled for $3 million, “Judge Gershon considered similar TVPA claims brought by a plaintiff who was recruited from the Philippines to work as a nurse in the United States.  At the motion to dismiss stage, Judge Gershon concluded that a $25,000 liquidated damages provision threatened serious harm under the TVPA.”
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The Judge concluded that the Filipino nurses have stated claims sufficient to invalidate the “liquidated damages” clause and to pursue damages for breach of contract and violations of the TVPA against both United Staffing Registry and Mr. Santos.

Find Out If You Have a Claim for Reimbursement of Your "Buy Out" Payment Plus Interest.
Call Us Today for a Free and Confidential Consultation.

Call (212) 601-2728

The Complaint Accuses United Staffing of Breaching the Nurses’ Contracts and Violating the Trafficking Victims Protection Act

The complaint alleges that United Staffing recruited more than 100 nurses from the Philippines to work in New York.  The company’s standard employment contract contains penalties designed to keep Filipino nurses working for United Staffing’s clients, including a requirement that the nurse pay thousands of dollars in “liquidated damages” if she wants to end the contract early.

The contracts also include a non-compete penalty that prohibits the nurse from working in the healthcare field anywhere in the United States for a period of three years, and a threat that the nurse will be reported to Immigration and Customs Enforcement (ICE) and may be deported if she stops working without paying thousands of dollars in “liquidated damages.”

The complaint alleges that United Staffing fails to pay the nurses for all the hours they work and fails to pay the prevailing wages required by the contracts.  Many nurses keep working, however, because they cannot afford to pay thousands of dollars to buy out their contract.  They also fear that they may be unable to work as a nurse for three years and could be deported if they quit.
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Other nurses end up borrowing thousands of dollars from family and friends to “buy out” their contracts.

The Nurses Ask the Court to Certify the Case as a Class Action

The nurses have asked the court to certify the case as a class action on behalf of all nurses from the Philippines who were employed by United Staffing Registry, Inc. under its standard employment contract at any time since April 5, 2011.

The nurses' brief in support of the motion argues that Filipino nurses who signed United Staffing’s standard contract have a common interest in a judicial ruling that the “liquidated damages” clause is illegal and unenforceable.  They also have a common interest in recovering damages for: (a) underpayments of the prevailing wage; (b) deductions for breaks that were not actually taken; (c) payments to “buy out” their contracts.

While United Staffing claims that it is not possible to determine who should be included in the proposed class, the nurses have filed a reply brief pointing out that United Staffing’s own documents identify almost 300 nurses who would be included in the proposed class action.

Find Out If You May Benefit from the United Staffing Lawsuit

You may benefit from the proposed class action if you signed an employment contract with United Staffing Registry, Inc. between April 5, 2011 and December 15, 2019.  If so, then you may have a claim for:

• reimbursement for any amounts you paid to “buy out” your contract;
• underpayments of wages if you were not paid the prevailing wage, were not able to take all of your breaks, or were not paid for all the hours you worked; and
• 9% annual interest on your damages.

How can you find out if you should be included in the proposed class action?  Call us at (212) 601-2728 to schedule a free and confidential consultation with one of our lawyers.  We will review your documents, and discuss the case with you.  We will explain how a class action works and whether you have a claim.

Call (212) 601-2728