The Department of Labor has filed a lawsuit against a Brooklyn staffing agency over claims some workers were told they would have to repay part of their wages if they quit before hitting the three-year mark.
The DOL said that Advanced Care Staffing, which provides healthcare companies with workers, made employees sign contracts making them work for three years or repay some of their wages to cover the company's future profits, attorneys' fees, and costs associated with arbitration.
The DOL likened employees' wages to a loan that they may have to repay to the company alongside interest and fees.
"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," the DOL wrote in the lawsuit.
The clause pushed some employees' wages below the federal minimum wage, the DOL said in the lawsuit — filed earlier in March in the US District Court for the Eastern District of New York — which Insider has viewed.
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