I recently heard from a colleague that a hospital here in the LA area makes new grads sign contracts prior to orientation. The new grads agree to pay back the cost of their training if they do not complete the orientation period, and it can result in bills of up to $5000. They will be billed if they are not found to be a good fit for the facility, and several of this hospital's most recent cohort have been let go and billed.
I was so shocked by this that I emailed the hospital's HR department, and they confirmed that it's true.
Is this the new norm for hiring new grads?! It is outrageous and shameful to bill new grads, who are likely in debt and who are certainly unemployed, because the job did not work out.
I'd be interested in reading the full text of the contract to see if repayment was required if the hospital decided to let the employee go. If the employer decides the employee just "isn't a good fit" I agree that demanding they pay back part of their earnings is unfair. However, if they employee decided to leave the position, or otherwise violated company policy (behaviorally, ethically, etc) that resulted in termination, I see nothing wrong with a contract requiring the employee repay of what they earned while orienting.
In the LA area, a new grad is probably making about $14,000 over the course of a 10 week orientation. That's a big expense for the hospital if that employee turns around leaves.
I signed one for my job with a $13,000 payback and I don't regret it. The contract is for two years, and the amount that you would have to pay back if you were to leave early goes down for every 4 months that you work. My hospital also didn't come after people who had legitimate reasons to need to leave- i.e. one girl who started with me, her mom got diagnosed with stage 4 cancer about a year after we started, and they allowed her to break her contract to move home with no penalty. I think the system is more in place to prevent people from abusing the new grad programs- getting their year of experience and moving on. My hospital also won't fire someone unless they REALLY are unfit for the job. They will take people and move them to new units/different specialties, etc, and will try to work with you extensively via education, etc. If you show no effort, refuse to be open to changing your practice, don't show up for work, call out regularly, etc and are fired, then those are the people who should be held to these contracts.
Specializes in CCU, SICU, CVSICU, Precepting & Teaching.
I signed one for my job with a $13,000 payback and I don't regret it. The contract is for two years, and the amount that you would have to pay back if you were to leave early goes down for every 4 months that you work. My hospital also didn't come after people who had legitimate reasons to need to leave- i.e. one girl who started with me, her mom got diagnosed with stage 4 cancer about a year after we started, and they allowed her to break her contract to move home with no penalty. I think the system is more in place to prevent people from abusing the new grad programs- getting their year of experience and moving on. My hospital also won't fire someone unless they REALLY are unfit for the job. They will take people and move them to new units/different specialties, etc, and will try to work with you extensively via education, etc. If you show no effort, refuse to be open to changing your practice, don't show up for work, call out regularly, etc and are fired, then those are the people who should be held to these contracts.
This sounds like a fair hospital. I cannot blame them for requiring a two year contract, given that so many new grads abuse their first job by leaving at the first opportunity. Most of them do not even plan to stay -- they're just taking the job "until I get into graduate school" or "until my boyfriend is transferred to Milwaukee in six months." If they're honestly willing to work with people who have legitimate reasons for leaving that were unforeseeable when they took the job, it seems more than fair.
Specializes in Oncology; medical specialty website.
The worst case I ever dealt with personally was an experienced nurse switching specialties. She put in her 30-day resignation on Day 2 of employment. She had accepted a job in that new specialty in another city -- and wanted to go there with some experience under her belt. She thought she would get 30 days of paid orientation from us and then take that experience to her new employer. (And no, she didn't work for us before. She was a new employee for the hospital system.)
She was surprised that I told her to leave right away -- in the middle of the day -- and that we would not pay her to take our orientation classes prior to her move out of town.
It's nurses like that who have lead hospitals to require contracts.
Double-Helix, BSN, RN
3,377 Posts
I'd be interested in reading the full text of the contract to see if repayment was required if the hospital decided to let the employee go. If the employer decides the employee just "isn't a good fit" I agree that demanding they pay back part of their earnings is unfair. However, if they employee decided to leave the position, or otherwise violated company policy (behaviorally, ethically, etc) that resulted in termination, I see nothing wrong with a contract requiring the employee repay of what they earned while orienting.
In the LA area, a new grad is probably making about $14,000 over the course of a 10 week orientation. That's a big expense for the hospital if that employee turns around leaves.