Predatory New Grad Contracts

[CreamCheeseRangoons]

Hey, y'all! I am compiling stories from folks who have broken predatory new graduate contracts, and have faced financial and career consequences as a result (I'm looking at you, HCA). The hospitals have held all the power in these dealings, and it's time we receive justice. Many of us have struggled and worked hard to provide excellent care for our patients under dire staffing and resources, only to receive backlash when we decide it's time to leave these unsafe conditions. I want to help tell our stories and prevent this disgusting practice to end. Here is my story:

I recently left a position at an HCA facility before my new grad contract was up (I had completed 3/4 of the two years), and I now owe them thousands of dollars. The unit I worked on was chronically understaffed, overworked, and underpaid. I continued to work hard and try to boost morale despite the daily strife. I volunteered to work in the COVID units back in April 2020 when little was known about the disease, and how to protect ourselves from it. Then my home unit was also turned into a PCU COVID unit, where I spent many of my shifts until I left in December 2020. My mental health had been deteriorating as a result of the stress and exhaustion. I had many conversations with my manager about the unacceptable conditions, and how it was affecting my mental health. No attempts were made to remedy the unit's situation. I told my manager I was accepting another position to take better care of myself. I am now being harassed by their collections agency, Benefit Recovery Group, to pay up the money I owe for the "Residency Program," (aka a three month orientation similar to what an experienced nurse would receive if they were changing unit specialties).

I don't believe I should be penalized for leaving unsafe working conditions after I had made multiple reports. I also cited my health as a reason for leaving, and it's only ironic that a hospital would come after an employee for prioritizing their health. Attempts at contacting HR and my previous manager have been futile. I am now frustrated, angry, and hungry for justice for myself and others who have been wronged by hospitals. 

Please message me if you want to share your story. I will respect your need for anonymity if that is what your wish. Thank you for your time. 

[SmilingBluEyes]

When it comes to sign-on bonuses, (including those for new graduates) I am all about Buyer Beware. There is always a reason and it's not to the benefit of the nurse.

I am sorry this happened to you; you are so not alone. Hope you get good responeses here. I myself have never been victimized this way.

[LovingLife123]

Don’t sign a contract then.  You knew that you were committed to two years and if you didn’t complete the two years, you would have to pay it back.  That’s what a contract is.  That’s not predatory.  

I signed a retention contract before covid started.  I honored my contract despite many things I disagreed with during covid.  Not getting a raise was one.  

We all worked under difficult circumstances with covid.  We all did the best we could.

New grad contracts are common.  It costs a ton of money to train a new grad.  The cost is over $100k. I saw a figure a few years ago that stated $129k.  An employer wants to at least ensure they will get that money back.

There are many places that don’t require a contract.  They won’t come with that nifty sign on bonus though.  So now you know better next time to not sign it.  

[amoLucia]

LovingLife123 - TY for speaking the truth.

Just like you don't just stop paying on your mortgage; they will foreclose.

And if you don't continue your car pay'ts, they'll repossess the car.

I'm saddened that OP found work conditions so unbearable, but there's a signed contract. That trumps all!

[Jedrnurse, BSN, RN]

On 4/10/2021 at 3:09 PM, LovingLife123 said:

New grad contracts are common.  It costs a ton of money to train a new grad.  The cost is over $100k. I saw a figure a few years ago that stated $129k.  An employer wants to at least ensure they will get that money back.

I would really like to see a reliable source for this, particularly one that breaks down the legitimate expenses, item by item.

[JKL33]

1 hour ago, LovingLife123 said:

It costs a ton of money to train a new grad.  The cost is over $100k. I saw a figure a few years ago that stated $129k.

Employers can say whatever they want. Proof is required for such statements, from employers and from those who repeat their figures as if they are the truth.

 

1 hour ago, LovingLife123 said:

We all worked under difficult circumstances with covid.  We all did the best we could.

You understand that covid was only mentioned as an example of nurses trying to be team players and trying not to throw a huge fit when things aren't perfect, I hope. I think in combination with the contract issue it provides an adequate example to demonstrate how hospitals do not follow the moral-esque expectations that everyone else is to abide by.

The responsibility thing is funny - I was raised in an atmosphere that was exceedingly heavy on personal responsibility. But as an adult, I see the lopsided manner in which the concept of responsibility is frequently applied. Hospitals didn't do their best with covid; they freaked out and tried to maintain their (financial) positions on the backs of employee health and safety. But yes, the entry-level worker widget (ahem, "nurse resident") was surely more irresponsible. Please. ?

[Emergent, RN]

I agree that people need to go in with open eyes. Have a lawyer read a contract that you are signing if necessary. You are an adult. 

It's entirely similar to blaming the credit card company for you going on a spending spree. 

[MunoRN, RN]

This topic came up at work once and a nurse shared that they left their first job early and had to pay back a 'bonus' because of all the reasons mentioned by the OP.  They got a job at a different hospital and realized it was far worse, so went elsewhere again only to find it even worse than the last, they eventually had to swallow their pride and went back to work for the original hospital, and ended up working their longer than the new grad contract required but now with no 'bonus'.

New nurses should be careful to differentiate a truly bad hospital and the large discrepancy between their expectations and common reality.

[JKL33]

1 hour ago, Emergent said:

It's entirely similar to blaming the credit card company for you going on a spending spree. 

Hm. If using the credit card analogy this seems like a situation where a charge-back would be appropriate. I am just guessing because I am a good responsible human being who has never disputed any charges.

[CreamCheeseRangoons]

On 4/10/2021 at 2:20 PM, SmilingBluEyes said:

When it comes to sign-on bonuses, (including those for new graduates) I am all about Buyer Beware. There is always a reason and it's not to the benefit of the nurse.

Hi! It was not a sign-on bonus. I received no bonus. It’s just a penalty for leaving. 

[SmilingBluEyes]

9 minutes ago, watsonse1 said:

Hi! It was not a sign-on bonus. I received no bonus. It’s just a penalty for leaving. 

OK I misunderstood. What did the contract say? You had to stay a certain time? Did you read it before you took the job? Sounds like you are stuck. Sorry.

I guess I don't know what is predatory about this. If you sign a contract, sadly, they can enforce it.

I am sorry this job was such an awful experience for you.

[JKL33]

1 hour ago, MunoRN said:

This topic came up at work once and a nurse shared that they left their first job early and had to pay back a 'bonus' because of all the reasons mentioned by the OP.  They got a job at a different hospital and realized it was far worse, so went elsewhere again only to find it even worse than the last, they eventually had to swallow their pride and went back to work for the original hospital, and ended up working their longer than the new grad contract required but now with no 'bonus'.

As above, these often don't even involve any bonus.

***

This is an easily-avoided situation for employers: Just hire experienced people who don't need so much training. But then it isn't hard to understand why employers would seek out new grads who are so extremely expensive to train.