New Grad Orientation Contracts

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I've seen older posts on this site about New Grad Orientation Contracts that require new nurses to stay on their unit for a set amount of time (up to 2 years) or else be forced to pay back orientation costs to the facility. Most of those posts told new grads to run as fast as they could away from the facility.

However, a lot of the places I've applied to all have those contracts. Is this becoming more common?

What happened to sign on bonuses in order to retain nurses?

To clarify, they require you to sign a "new grad residency" contract, which is 8-12 weeks of orientation. If you pass their orientation period you are required to work on that unit for 2 years (and in some cases required to stay at the facility for an additional year). Failure to do so, as stated in the contract, requires the nurse to pay back orientation costs of 10,000 dollars, which is pro-rated down slightly the longer you stay.

I understand that nurse retention is important, but this seems threatening and morale crushing. I completely understand having to sign a contract to pay back a sign-on bonus if you leave early, but having to "pay" for my orientation seems a little ridiculous. It makes me wonder what's wrong with the facility that would make nurses want to leave so badly that HR thought this contract was the only way to keep nurses working there.

Should I follow the older posts advice of running from these facilities or do I bite the bullet and just accept that this is what I have to do in order to get experience?

Specializes in Tele, ICU, Staff Development.

Hospitals offering sign-on bonuses for new grads are suspect

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Specializes in Psychiatry, Community, Nurse Manager, hospice.

These contracts do not exist where I live. IMO, this is a basic human rights violation and should be illegal everywhere.

I would suggest consulting an employment lawyer in your state and asking whether such a thing is legal and whether there is any case law in which hospitals have actually collected on a breach of contract in this manner.

I have never found a single case where a court actually made a nurse pay for quitting early. I'm not talking about tuirion reimbursement, which is a different animal. But I'm not a lawyer. They are trained in that and can give you a good idea as to whether or not you should sign a contract like this.

Before my nursing days I was presented with a contract that included a global non compete clause for 10 years! In other words, if I quit I would be prohibited from working in that field anywhere in the world for 10 years. I was stunned. I took it to a contract attorney who told me that I could sign it if I wanted to, because it was illegal and unenforceable. It would never hold up in court. I didn't sign it, because I didn't want to make the promise even if it was unenforceable and illegal. It just seemed like bad business to me either way.

That was a pretty good gig but not the only gig in town. Hopefully you also have the means to enter into a mutually agreeable situation with an employer. But unfortunately if there is no union, employers do have the upper hand in contract negotiations.

Best wishes. Unionize if possible.

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Specializes in Emergency, Telemetry, Transplant.
Actually, even hospitals whose contracts don't have an official out for nurses whose partners are required to move for their jobs will forgive that reason for leaving. Often.

That is good to know. I'd still want it in writing though.

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Specializes in Med-surg, telemetry, oncology, rehab, LTC, ALF.
Hospitals offering sign-on bonuses for new grads are suspect

I should clarify: I was not a new grad, but an experienced nurse when I started working at my current hospital. I worked as a nursing supervisor in LTC before accepting this job.

To me, the OP's post sounded more like my current contract than the contracts that I've seen for new grads.

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If I were an employer, I would have those contracts. It has nothing to do with being so desperate for new grads.

It just amazes me the entitled attitude of some new nurses, whether a new grad or new to a field, that the employer should embrace the opportunity to teach/give them job skills while being paid. Of course an employee has to be paid but it's the attitude of being owed this education without bringing it to the job. And feeling completely justified in leaving for a better offer following orientation.

In fairness to the existing nurses who are greatly impacted by the high turnover only to start over with yet another new grad, exhausting and frustrating while they carry the burden, it benefits them as well.

This is a bunch of B.S. It has nothing to do with entitlement. Things happen in life. To owe 10k if something happens is obnoxious. Hospitals need to take that into account with overhead before cutting the checks to the CEOs. They don't give a crap about my bills, I'm not going to care about theirs. I'll care about my coworkers, but no way am I feeling sorry for already anticipated overhead.

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I've never heard or seen new grad contracts. I wouldn't sign one.

So if I decide the facility is horrible and I want to leave I have to pay to quit? Or they can give trash schedules, change the policies at will, do whatever they want because they know you'll have to pay them if you leave. No thanks. I've seen things like this happen to people who have huge sign-on bonuses or tuition reimbursement contracts.

These new hire contracts that y'all speaking about don't even seem to have any benefit to them for the new grad, only the facility. If the relationship goes south no one is winning except the facility, it's like a win/win for them and a loss for the new grad if they want to leave. Not all new grads will have supportive environments or be a good fit for their first job.

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Specializes in public health, women's health, reproductive health.

Thank goodness I never signed one of these contracts. They are an absolute outrage, IMO. I have no sympathy for hospitals with high turnover rates who resort to trying to force new grads to stay when they don't want to, sometimes for very good reasons, which could include the hospital being a crappy place to work.

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Most hospitals in my area utilize new grad contracts, and they vary in length of time and monetary value. I signed a contract as a new grad, and the hospital put me through a residency program (which was helpful for learning hospital policy but not any new info). My contract was 2 years worth $8000. After 14 months in my position on a post op floor I ended up leaving to work per diem. I did break the contract and I did owe about $3000. What I gained was knowledge, skill and experience and I had several job offers when I left. Unfortunately you don't know how the job will be until you have done it, but if a job you're interested has a contract I would go for it and make the best of it. Good luck.

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Most hospitals in my area utilize new grad contracts, and they vary in length of time and monetary value. I signed a contract as a new grad, and the hospital put me through a residency program (which was helpful for learning hospital policy but not any new info). My contract was 2 years worth $8000. After 14 months in my position on a post op floor I ended up leaving to work per diem. I did break the contract and I did owe about $3000. What I gained was knowledge, skill and experience and I had several job offers when I left. Unfortunately you don't know how the job will be until you have done it, but if a job you're interested has a contract I would go for it and make the best of it. Good luck.

So you basically had to pay them $300 per month for every month you didn't want to work there? That's crazy!

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From what I have seen , the new graduate contracts don't really stop new grads from leaving especially if the facility is bad. There is a hospital in my area who had to do away with the contracts because their newer nurses still kept leaving even those signed contracts. Such facilities need look at the real problem and find solutions. I personally would not sign any contract for any nursing position.

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Specializes in Critical Care; Cardiac; Professional Development.

New grad contracts are a human rights violation?? I think I have heard everything now.

New grad contracts are the norm in my area. The extent to which they are enforced is pretty political from what I have seen. It definitely isn't consistent. However, there are very very few new nurse opportunities in acute care where I live without a contract requirement. So much so that I am actually surprised to hear that anyone has never heard of such a thing.

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New grad contracts are a human rights violation?? I think I have heard everything now.

New grad contracts are the norm in my area. The extent to which they are enforced is pretty political from what I have seen. It definitely isn't consistent. However, there are very very few new nurse opportunities in acute care where I live without a contract requirement. So much so that I am actually surprised to hear that anyone has never heard of such a thing.

Maybe that's common in your area. What state are you in?

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