When your contract is cancelled.

NedRN · Feb 5, 2016

First, your contract language may have first priority here. A call for liquidated damages may or may not be defensible in a given legal venue. If the language is unclear or has other legal issues, your agency may not be able to win without actual damages. If I am taking a housing stipend, I don't accept a contract that awards damages as there is no real damages to the agency if a contract cancels.

Second, if your agency without scruples, there is not much you can do to fight contractual damages. Because tracking down a traveler to serve and sue for liquidated damages is difficult at best (almost impossible without cooperation from you), and then collecting the damages is even harder, the agency can use alternative and quasi-legal methods. One method is to withhold your last check (generally illegal to hold pay, but not always depending on the contract and the state involved), or sometimes paying your final hours at minimum wage, or even reversing your last direct deposit. Doing so now puts you in the plaintiff's spot having to sue the agency for redress (never worth it from a financial perspective).

Another equally unfair method but again quasi-legal is to send the "damages" out for collection if you refuse to pay. Basically you have no recourse if that happens, your credit is damaged if you don't pay.

Tactically, the best bet in your situation is to string your agency along while you proceed with other options. If that other assignment comes through, at some point you can tell them - as much later as you can (even doing deliberately bad interviews). Part of stringing them along is saying that you are happy to do an assignment in the future with them, and from the sounds of your story, it is likely true. Best left unsaid is that they will have to compete for your business.

Bluebolt · Feb 5, 2016

Thanks for the advice Ned. I've never been in this situation. It's sounding like I shouldn't take an assignment with another agency for the moment unless I want to deal with legal complications. Ultimately there is nothing I could have done to avoid the cancellation and all I had left was 4 weeks. They will keep whatever portion of the stipend they would have dispensed for the remainder of the 4 weeks so they have no legal claim over that. I can't imagine there is a fine to pay because I did not quit or get cancelled for a legitimate reason so I don't see how the agency would have any real legal claim to anything from me.

Although they are trying to find me a few positions they aren't very promising and they don't have a reliable lead like my other agency is offering. I guess I will see whoever interviews and offers first then. You don't recommend telling my current agency that I have an offer with good pay and location, usually that speeds up their process and increases the pay package.

NedRN · Feb 5, 2016

The decision is yours but I was simply giving you the worst case scenario and suggesting switching - partly based on you already having a good option. You do need to read your contract carefully to fully understand the potential for agency misbehavior. If indeed you have a bad actor, you will be in the same legal position after doing another assignment with them unless you get something in writing absolving you from damages from the cancellation. There is no 3 month statute of limitations.

You don't necessarily have a bad agency. I don't like the legal crap comment but it could have been inadvertent or a bit of gamesmanship. If so, nothing bad will happen and you might as well find out now. The reason I suggested stringing them along as long as possible by playing along looking at assignments is that if they pay you all hours and such you are in a stronger position to negotiate. The old saying about possession being nine tenths of the law has some validity here.

If after receiving your pay in full and they take adverse action, there are some remedies. Wouldn't you rather be in that position with all you money than where you are now?

Bluebolt · Feb 5, 2016

The decision is yours but I was simply giving you the worst case scenario and suggesting switching - partly based on you already having a good option. You do need to read your contract carefully to fully understand the potential for agency misbehavior. If indeed you have a bad actor, you will be in the same legal position after doing another assignment with them unless you get something in writing absolving you from damages from the cancellation. There is no 3 month statute of limitations.
You don't necessarily have a bad agency. I don't like the legal crap comment but it could have been inadvertent or a bit of gamesmanship. If so, nothing bad will happen and you might as well find out now. The reason I suggested stringing them along as long as possible by playing along looking at assignments is that if they pay you all hours and such you are in a stronger position to negotiate. The old saying about possession being nine tenths of the law has some validity here.
If after receiving your pay in full and they take adverse action, there are some remedies. Wouldn't you rather be in that position with all you money than where you are now?

Great point. I really enjoy working with this particular agency and my recruiter is great, it would be a shame if they got shady over something like this. Even if I take this contract with the other company it would probably be for this contract and then come back to them. I'll look over the contract again and see what verbiage is used. Thanks Ned!

canes41 · Feb 7, 2016

I must admit, I know more about legal issues than nursing. I am not a nurse. First, I would look at the language of the contract. Contracts exist for a reason. Usually a party cannot just decide the cancel a contract after they have entered into it. First issue I would check is if they had any legal right to cancel. There is a good chance they didn't. If so, they would likely be liable for any damages you incur. Maybe talk to an attorney.

NedRN · Feb 7, 2016

Often there is at-will language in travel contracts. Yes, this negates much of the point of a contract, but they are written such that no matter the cause of the terminated contract or by whom, liquidated damages still apply to the traveler. Travel contracts are written by agency lawyers to protect the agency, not the other party. You might be able to make a case for contract of adhesion or non-contractual termination, but at what cost and for what reward? Frankly, the contract is almost irrelevant here, no one is going to sue. Too difficult and expensive. The suggestions I made were to protect against bad agencies that treat a cancelled contract as a debt to collect via collection agencies, or withholding last check (or two).