Region 9-Cincinnati Issues Complaint Against CommuniCare Family of Companies Alleging Unlawful Stay-or-Pay Agreement

Today, the NLRB’s Region 9-Cincinnati Regional Director issued a complaint against the CommuniCare Family of Companies and various of its health center providers in Ohio, Indiana, Maryland, Pennsylvania, and Virginia. The complaint alleges that CommuniCare has maintained and sought enforcement of an unlawful stay-or-pay agreement that does not advance a legitimate business interest, and instead is aimed at forcing employees to remain employed against their will.

In 2020, CommuniCare hired workers who were foreign nationals through a paid recruiter and sponsored the employees as legal permanent residents. CommuniCare promised to provide certain advancements and relocation assistance totaling $16,000, which would be forgiven on a prorated basis over 36 months. The employees agreed to repay unforgiven costs should they voluntarily terminate their employment at CommuniCare or should CommuniCare terminate their employment for any reason other than a layoff or facility closure during that three-year period.

Five employees worked at their respective facilities for between one and four months before resigning due to concerns about inadequate training and orientation, COVID safety, understaffing, and high patient loads. Shortly after they resigned, CommuniCare sent them a “Breach of Contract Notice” for failing to fulfill their three-year service commitment and specifying a repayment amount. Four employees contacted CommuniCare to try to repay the amount sought, but none received a response. A fifth employee successfully received payment instructions and paid the amount in full.

In October 2022, CommuniCare filed separate lawsuits against each of the five employees in the court of common pleas in Hamilton County, Ohio asserting breach of contract, unjust enrichment, and fraud claims. The complaints sought more than $50,000 in damages for both the contract and fraud claims, as well as unspecified punitive damages, attorney’s fees, litigation expenses, and other legal costs.

“The employer’s conduct against these workers demonstrate it is making an example out of the employees to coerce similarly situated nurses into staying,” said Regional Director Eric Taylor. “This attempt to lock employees in their jobs severely interferes with their ability to exercise their labor rights and is thus unlawful under the Act,” said Regional Director Eric Taylor.

A hearing before an NLRB Administrative Law Judge has been set for February 10, 2025. On June 13, 2024, an NLRB Administrative Law Judge ruled that non-compete and non-solicitation provisions violate the National Labor Relations Act. Earlier this year, NLRB Region 9 in Cincinnati obtained a settlement involving non-compete and training repayment provisions which restricted employee mobility.

In October 2024, General Counsel Abruzzo issued a memo expanding on her May 2023 memo stating her position that stay-or-pay provisions are unlawful because they have serious potential for suppressing union organizing and other concerted activity for mutual aid or protection, including by impairing job mobility.

The Agency has entered into memoranda of understanding with the Federal Trade Commission, the Department of Justice’s Antitrust Division, and the Consumer Financial Protection Bureau in order to advance a whole of government approach to the anticompetitive effects of restrictions on mobility.

Established in 1935, the National Labor Relations Board is an independent federal agency that protects employees, employers, and unions from unfair labor practices and protects the right of private sector employees to join together, with or without a union, to improve wages, benefits and working conditions. The NLRB conducts hundreds of workplace elections and investigates thousands of unfair labor practice charges each year. Region 9 serves Indiana, Kentucky, Ohio, and West Virginia from its Regional Office in Cincinnati.