California Attorney General Rob Bonta has announced a settlement with HCA Healthcare, Inc. and Health Trust Workforce Solutions, LLC. The agreement resolves allegations that the hospital system unlawfully required entry-level nurses to repay the cost of a mandatory training program if they left their jobs within two years. This practice was found to violate both state and federal laws.
“All too often, employer-driven debt forces workers to remain in jobs that they would otherwise leave,” said Attorney General Bonta. “With today’s settlement, we are taking a stand for workers in our states by holding HCA Healthcare accountable.”
The investigation into HCA’s practices was conducted by the attorneys general of California, Colorado, and Nevada, along with the Biden Administration’s Consumer Financial Protection Bureau. They determined that HCA used Training Repayment Agreement Provisions (TRAPs) in nurses’ employment contracts.
Sandy Reding from the California Nurses Association praised Attorney General Bonta’s efforts: “HCA has a shameful track record of using predatory stay-or-pay contracts.” Rosanna Mendez from SEIU 121RN also supported the action: “Attorney General Bonta’s action demonstrates that he strongly supports California’s frontline healthcare workers.”
As part of the settlement, HCA will pay approximately $83,000 to provide restitution to affected nurses in California and will be prohibited from imposing TRAPs on nurse employees. Additionally, HCA will pay $1,162,900 in penalties to California as part of a total penalty amounting to $2.9 million across settlements filed in three states.
Employer-driven debt is not unique to healthcare; it is present in industries such as trucking and retail. However, state law protects Californian workers against such practices.
Attorney General Bonta continues his advocacy for consumer protection enforcement and supports Assembly Bill 692 (AB 692), which aims to prohibit employment contracts requiring workers to repay employers if they leave their job.
