Need to move but have a versant contract

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I got hired on as a versant resident in February, but now my husband is transferring out of state and we need to move. My contact says that if I voluntarily terminate before 2 years, I have to pay back $5,000 of training costs. HR wants me to pay it in full or make a payment plan. Does anyone know if there is any provision for this kind of situation? Can they make me pay this out if my only option is to live away from my husband for a year or pay out this contract? Thanks.

I've always thought that any hospital that pursues a debt collection from a new grad is not making a good choice. I can see the headlines in my mind "Hospital takes Nurse to Collections" and have to laugh. Really? Not great PR.

I also am not convinced contracts really "work" for that very reason, and am not a fan.

I don't think anyone's a "fan" of new grad employment contracts. However, lots of hospitals feel that they've gotten burned too many times by new grads leaving jobs during or shortly after orientation (new grad turnover is much higher in recent years than it's ever been before), which is a big financial loss for hospitals, and that's how the contracts got started, as a mechanism to get new grads to commit to staying with the employer until the employer recoups the initial investment in the new grad, or require reimbursement if the new grad leaves before that point. Another option is for hospitals to simply refuse to hire new graduates. Is that better?

I doubt v. much that a hospital enforcing a legal employment contract is ever going to result in "headlines." Why would that be news? Who would care? What would the story be? "I voluntarily signed a contract agreeing to work for this hospital for X amount of time, and agreeing to pay $X penalty if I didn't, and now I want to leave and they're insisting I abide by the conditions of the contract"?

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Specializes in Tele, ICU, Staff Development.
I don't think anyone's a "fan" of new grad employment contracts. However, lots of hospitals feel that they've gotten burned too many times by new grads leaving jobs during or shortly after orientation (new grad turnover is much higher in recent years than it's ever been before), which is a big financial loss for hospitals, and that's how the contracts got started, as a mechanism to get new grads to commit to staying with the employer until the employer recoups the initial investment in the new grad, or require reimbursement if the new grad leaves before that point. Another option is for hospitals to simply refuse to hire new graduates. Is that better?

I doubt v. much that a hospital enforcing a legal employment contract is ever going to result in "headlines." Why would that be news? Who would care? What would the story be? "I voluntarily signed a contract agreeing to work for this hospital for X amount of time, and agreeing to pay $X penalty if I didn't, and now I want to leave and they're insisting I abide by the conditions of the contract"?

Right, I understand the reason hospitals started doing this. I'm just not sure contracts get the desired results. Hospitals don't really want nurses' money. They want to reduce turnover.

..they still have turnover.

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Right, I understand the reason hospitals started doing this. I'm just not sure contracts get the desired results. Hospitals don't really want nurses' money. They want to reduce turnover.

..they still have turnover.

I agree it's not an ideal answer to the problem it's supposed to be addressing. I doubt the hospitals think it's an ideal answer. But, for quite a while, we had lots of hospitals stating "new grads need not apply" on their job postings. That's not a good answer, either. I spent a few years working as a hospital surveyor, and this topic came up frequently in conversations with nursing administration all over my state. Even 15 years ago, hospitals were feeingl really burned by their recent experiences with many new graduates. Maybe they're right to feel that way, maybe they're wrong. Given many of the postings I see on this site from new grads, I tend to empathize more with the hospitals.

What approaches do you think might be more successful in addressing the turnover problem?

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Specializes in Tele, ICU, Staff Development.
I agree it's not an ideal answer to the problem it's supposed to be addressing. I doubt the hospitals think it's an ideal answer. But, for quite a while, we had lots of hospitals stating "new grads need not apply" on their job postings. That's not a good answer, either. I spent a few years working as a hospital surveyor, and this topic came up frequently in conversations with nursing administration all over my state. Even 15 years ago, hospitals were feeingl really burned by their recent experiences with many new graduates. Maybe they're right to feel that way, maybe they're wrong. Given many of the postings I see on this site from new grads, I tend to empathize more with the hospitals.

What approaches do you think might be more successful in addressing the turnover problem?

I really do have mixed views on this, because like you said, hospitals invest a lot of money in new grad training, and I do think new grads are fairly naive to this investment on their behalf.

But causes of nurse turnover are complex. I think retention is about safe working conditions and workloads, appreciation and respect, competitive reimbursement. For me it's about knowing my opinion counts and my work is recognized.

As far as contracts- they probably are a necessary evil, perhaps they are a deterrent to a handful of folks who would take advantage. In this case, if HR were to free her without penalty from her contract, it would be a wise move as the hospital would gain respect from the nurses as an understanding employer.

Just my humble point of view. Really enjoyed the debate with you, elkpark.

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Thank you. That's exactly my problem. Yes, I know what I signed, and it is not my intention to get out of a contract. I like my job very much and would gladly stay for the full two years and more if my husband was not transferring. I was just wondering if this can be considered a "voluntary" termination of my contracy when I don't have much choice about moving. HR told me that unless they fired me it's considered voluntary, but other people on my unit have said that it shouldn't be considered voluntary. Anyway, I'm going to run this by an attorney and see what they tell me. Thank you.

I'm currently looking at the same situation ...curious as to how it tuned out for you?

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I ended up paying out the contract. Almost $5,000 but they let me make payments.

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