California Attorney General Rob Bonta has announced a settlement with HCA Healthcare, Inc. and Health Trust Workforce Solutions, LLC over allegations of unlawful training repayment agreements with nurses. The settlement addresses claims that HCA required entry-level nurse employees to repay the cost of mandatory training if they did not remain employed for two years. This investigation involved collaboration between the attorneys general of California, Colorado, Nevada, and the Consumer Financial Protection Bureau.
Attorney General Bonta stated, “All too often, employer-driven debt forces workers to remain in jobs that they would otherwise leave. That’s not just wrong; it’s illegal under state and federal law.” He emphasized holding HCA accountable to ensure affected nurses are financially compensated and deter future misconduct.
Sandy Reding from the California Nurses Association expressed gratitude towards Attorney General Bonta for addressing this issue: “HCA…has a shameful track record of using predatory stay-or-pay contracts.”
Rosanna Mendez from SEIU 121RN commented on the situation: “The Attorney General has found that HCA’s StaRN scheme violated the law and exploited new nurses in the process.”
Leo Perez from SEIU 121RN added, “HCA is notorious for prioritizing profit over employee well-being.”
Charmaine S. Morales from United Nurses Associations of California/Union of Health Care Professionals supported the settlement as a step toward protecting nurses’ dignity.
As part of employment at an HCA hospital, entry-level nurse employees were required to complete the Specialty Training Apprenticeship for Registered Nurses (StaRN) Residency Program. Until Spring 2023, RNs hired through StaRN had to sign agreements requiring repayment if they left before two years.
Under California’s settlement terms:
– Approximately $83,000 will be paid to provide full restitution to affected nurses.
– TRAPs will no longer be imposed on nurse employees.
– $1,162,900 in penalties will be paid by HCA.
Overall penalties across settlements in California, Colorado, and Nevada total $2.9 million.
Employer-driven debt refers to obligations incurred through employment arrangements where workers must reimburse employers for training or equipment costs if leaving before a specified date. This practice has grown beyond healthcare into industries like trucking and retail but remains restricted under California law.
Attorney General Bonta supports Assembly Bill 692 (AB 692), which prohibits employment contracts requiring workers to pay employers upon job departure regardless of circumstances.
Pending court approval documents related can be accessed online soon.
