The department's 'action against predatory stay-or-pay contracts sends a monumental message to employers: Obey the law or face repercussions,' said the head of Towards Justice.
The department's "action against predatory stay-or-pay contracts sends a monumental message to employers: Obey the law or face repercussions," said the head of Towards Justice.Workers' rights advocates are applauding the Biden administration this week for filing a historic lawsuit against a Brooklyn-based healthcare staffing agency for coercive contracts that allegedly violate federal labor law.filed against Advanced Care Staffing and CEO Sam Klein in the U.S.
"The contracts warn employees that if they leave ACS's employ before three years' time, they will face ACS and its lawyers in an arbitration behind closed doors, where ACS will demand that employees kick back much of their hard-earned wages—including wages to which they are entitled under federal law," the complaint continues.
Solicitor of Labor Seema Nanda reiterated in a statement Monday that "federal law forbids employers from clawing back wages earned by employees, for employers' own benefit." "Employers cannot use workers as insurance policies to unconditionally guarantee future profit streams. Nor can employers use arbitration agreements to shield unlawful practices," Nanda said. "The Department of Labor will do everything in its power to make sure employees are being paid their hard-earned wages, and to safeguard them from these types of exploitative practices."
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