Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Common AC Mistakes That Could Be Costing You Money

    September 11, 2026

    More Than 100,000 Demand FIFA Investigate Its President’s Ties To Trump

    September 10, 2026

    How to Support Digestive Health Through Daily Habits

    September 10, 2026
    Facebook X (Twitter) Instagram
    Trending
    • Common AC Mistakes That Could Be Costing You Money
    • More Than 100,000 Demand FIFA Investigate Its President’s Ties To Trump
    • How to Support Digestive Health Through Daily Habits
    • Everything You Need To Know About The New COVID Vaccine
    • How to optimize your website for AI search
    • AI research startup Listen Labs scrubbed a $1.5B funding round for Salesforce talks
    • 27 Must-Haves For Parents Traveling With Kids
    • Harvey Secures $550M at $15.5B Valuation for Legal AI Expansion – BitRss
    Facebook X (Twitter)
    SBM Global News
    Demo
    • Home
    • Top Stories
      • Politics
    • Business
      • Small Business
      • Marketing
    • Finance
      • Investment
    • Technology

      AI research startup Listen Labs scrubbed a $1.5B funding round for Salesforce talks

      September 10, 2026
      Read More

      Google Cloud races to catch up in the AI deployment wars with Accenture deal

      September 9, 2026
      Read More

      Phil Schiller’s App Store exit reportedly driven by wariness over future plans

      September 7, 2026
      Read More

      Clucky’s new alarm app wakes you up with a crowing rooster

      September 6, 2026
      Read More

      ETLMaestro – Company Profile – AllBusiness.com

      September 5, 2026
      Read More
    • Lifestyle
      • Travel
    • Feel Good
    • Get In Touch
    SBM Global News
    Demo
    Home»Business»Employment Contracts Under Fire As ‘Indentured Servitude’
    Business

    Employment Contracts Under Fire As ‘Indentured Servitude’

    By Staff WriterJanuary 14, 20255 Mins Read
    Facebook Twitter LinkedIn Reddit Email
    #image_title
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The American Civil Liberties Union and other legal groups are pressing a major arbitration provider to stop enforcing workers’ employment debts, saying the cases amount to “indentured servitude.”

    The ACLU sent a letter Monday to the American Arbitration Association, or AAA, urging the group not to hear disputes involving “stay-or-pay” agreements. Such contracts require workers to put in a minimum amount of hours before quitting or else they’ll have to pay the employer thousands of dollars to cover travel, training and other alleged costs.

    As a HuffPost article detailed last year, foreign-born nurses who quit their U.S. jobs are being taken to arbitration and forced to pay thousands of dollars to the staffing firm that recruited them, a company called MedPro International. Nurses claim they were misled about how much money they would earn in the U.S. and resigned out of desperation.

    The employment contracts include a mandatory arbitration clause, which keeps the disputes out of court and prevents nurses from banding together to counter-sue in class-action lawsuits.

    “Legal groups say the contracts force workers to choose between ‘coerced labor and catastrophic financial harm.’”

    One nurse from India told HuffPost she never received notice of her arbitration proceedings until they were over; the judgment against her came to $30,000, plus attorney’s fees to defray the company’s litigation costs. The case was overseen by the AAA, a nonprofit that bills itself as “the world’s largest private global provider of arbitration services.”

    A dozen other legal and labor rights groups joined the ACLU in saying they were concerned such proceedings lack “fundamental fairness” and force workers to choose between “coerced labor and catastrophic financial harm.”

    “By continuing to administer arbitrations of ‘stay or pay’ provisions… the AAA essentially facilitates indentured servitude and endangers its legitimacy as an impartial tribunal,” the groups wrote.

    AAA said in a statement that it is “committed to administering employment arbitrations fairly and equitably” and would review the ACLU’s concerns. It also said that “substantive legal determinations” ― such as whether stay-or-pay contracts violate the law ― are for judges and arbitrators to decide, “not the AAA itself.”

    Employers often pitch arbitration as a quick way to resolve disagreements and avoid costly legal battles in court. But many workers don’t have the means to pay for an attorney out-of-pocket and could struggle to find one to take the case on contingency, in which a lawyer receives a percentage of any award granted their client rather than a set fee, since any payout is likely to be modest.

    “Airline pilots and even dog groomers have been taken to court after quitting in recent years, with companies claiming they owe thousands of dollars in training and other costs.”

    Arbitration experts told HuffPost the MedPro cases were unusual in that the workers could be on the hook for additional legal fees if they lost, compounding their debts. The ACLU and its allies argued such a prospect discourages workers from even mounting a defense.

    “Workers are threatened with thousands more in arbitration costs and attorney’s fees if they defend themselves in arbitration,” they wrote.

    HuffPost has reported on several industries where employers use repayment agreements that lock workers into their jobs, preventing them from taking a competing offer with higher pay. Airline pilots and even dog groomers have been taken to court after quitting in recent years, with companies claiming they owe thousands of dollars in training and other costs.

    Demo

    Some federal regulators have been trying to crack down on employment contracts that can leave workers in debt. The National Labor Relations Board recently brought a case against a medical spa chain for allegedly trying to make aestheticians pay back at least $50,000 after resigning. The company ended up paying more than $25,000 to two workers in a settlement.

    The Federal Trade Commission has also proposed outlawing training repayment contracts as part of its federal rule banning non-compete agreements.

    We Need Your Support

    Other news outlets have retreated behind paywalls. At HuffPost, we believe journalism should be free for everyone.

    Would you help us provide essential information to our readers during this critical time? We can’t do it without you.

    Can’t afford to contribute? Support HuffPost by creating a free account and log in while you read.

    You’ve supported HuffPost before, and we’ll be honest — we could use your help again. We view our mission to provide free, fair news as critically important in this crucial moment, and we can’t do it without you.

    Whether you give once or many more times, we appreciate your contribution to keeping our journalism free for all.

    You’ve supported HuffPost before, and we’ll be honest — we could use your help again. We view our mission to provide free, fair news as critically important in this crucial moment, and we can’t do it without you.

    Whether you give just one more time or sign up again to contribute regularly, we appreciate you playing a part in keeping our journalism free for all.

    Support HuffPost

    Already contributed? Log in to hide these messages.

    The antitrust enforcer says the contracts illegally suppress workers’ wages by trapping them in their jobs, but it isn’t clear whether the rule will survive court challenges from employers. A judge appointed by former and future President Donald Trump blocked the rule from taking effect last summer, putting its future in limbo.

    View original article here

    Share. Facebook Twitter LinkedIn Email Reddit
    Previous ArticleBiden Aides Warned Putin as Russia’s Shadow War Threatened Air Disaster
    Next Article AI Agent Tokens Dip Amid Market Correction – BitRss

    Related Posts

    Shein Makes Lackluster Hong Kong Debut As Investors Fret About Growth And Regulatory Risks

    September 2, 2026
    Read More

    Starbucks Workers Call For Boycott Amid Contract Fight

    August 27, 2026
    Read More

    Home Depot Reports Higher Sales, but Its C.E.O. Isn’t There to Spread the News

    August 19, 2026
    Read More
    Add A Comment

    Leave A Reply Cancel Reply

    Demo
    Top Posts

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256

    AAVE Price Prediction: Target $215-225 by Mid-January 2025 as Technical Indicators Signal Bullish Momentum

    December 15, 2025240

    Wall Street Slumps As Alphabet, Qualcomm And Other Tech Stocks Fall

    February 7, 2026212
    Don't Miss
    Finance

    Common AC Mistakes That Could Be Costing You Money

    By Staff WriterSeptember 11, 20267 Mins Read

    With temperatures soaring this summer, people have been running their air conditioners around the clock.…

    Read More

    More Than 100,000 Demand FIFA Investigate Its President’s Ties To Trump

    September 10, 2026

    How to Support Digestive Health Through Daily Habits

    September 10, 2026

    Everything You Need To Know About The New COVID Vaccine

    September 10, 2026
    Stay In Touch
    • Facebook
    • Twitter
    Demo
    About Us

    Small Business Minder brings together business and related news from around the world in one place. Follow us for all the business news you'll need.

    Facebook X (Twitter)
    Our Picks

    Common AC Mistakes That Could Be Costing You Money

    September 11, 2026

    More Than 100,000 Demand FIFA Investigate Its President’s Ties To Trump

    September 10, 2026
    Most Popular

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256
    © 2026 Small Business Minder
    • Home
    • Get In Touch

    Type above and press Enter to search. Press Esc to cancel.

    Ad Blocker Enabled!
    Ad Blocker Enabled!
    Our website is made possible by displaying online advertisements to our visitors. To get the most from our site, please disable your Ad Blocker.