By Lauren Giella
Senior Reporter
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George Washington University (GWU) Hospital reached a settlement with the D.C. attorney general’s office over alleged illegal payment policies against recently hired nurses.
D.C. Attorney General Brian L. Schwalb announced Friday that his office resolved the issues with GWU Hospital after an investigation into suspected workplace rights violations involving the use of unlawful training repayment agreement provisions, known as TRAPs, that harmed nurses at the hospital.
Why It Matters
The attorney general’s office alleges that GWU Hospital’s actions violated D.C.’s antitrust laws and the ban on noncompete agreements because the hospital “deterred workers from seeking other employment,” and that the repayments and wage deductions are in violation of D.C.’s wage and hour laws.
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GWU Hospital denies the allegations. The agreement to settle does not constitute an admission of wrongdoing or liability.
As a result, GWU Hospital will pay more than $111,000 in restitution and penalties, per the settlement.
What To Know
The AG’s office alleges that between January 1, 2020, and July 1, 2023, GWU Hospital required nurses who were newly licensed or recent graduates to repay training costs up to $7,500 if they resigned before the completion of their two-year commitment. This TRAP was enforced through the unlawful deductions from nurses’ final paychecks and other requests for payment, according to the AG’s office. Nurses who failed to make the repayments were sent to collections by the hospital.
During the investigation, the AG’s office confirmed the nurses who were forced to make these training repayments only received the typical on-the-job training and did not gain a portable credential or standalone certification.
According to the AG, at least a dozen nurses paid the hospital nearly $35,000 under the TRAPs, and another 27 nurses were referred to collection for failing to make the payments.
Under the terms of the settlement, GWU Hospital will pay $96,998.40 in restitution and damages to 39 nurses and $15,000 in penalties to D.C.
The hospital must also notify employees that the contract clause requiring repayment is void and unenforceable within 30 days and rescind all open collections efforts related to those contract provisions.
In addition to the GWU Hospital case, the attorney general’s office also reached a settlement with The Hill Preschool in D.C.’s Capitol Hill neighborhood over similar TRAP violations.
What Happens Next
GWU Hospital has 90 days to make the penalty payments to D.C. and 60 days to make the payout to eligible employees. Payments to employees will be delivered through direct deposits.
What People Are Saying
D.C. Attorney General Brian Schwalb said in a statement: “These TRAP agreements restricted the job mobility of nurses and preschool teachers, financially penalizing them for choosing to change jobs. The Office of the Attorney General will continue to fight to make sure that workers’ rights are protected and that law-abiding businesses can compete on a level playing field.”
Newsweek reached out to GWU Hospital and the D.C. attorney general’s office for comment.
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