It is not unusual for employers to require foreign employees to
sign repayment agreements that require the employee to repay some
or all required immigration process costs if the employee
terminates employment before the end of the contract term.
Employers often use the contracts as a deterrent to employees
leaving as soon as the immigration benefit is secured, not
intending to enforce or collect damages. Employers may want to
reconsider this retention strategy.
Civil claims brought under the Trafficking Victims Protection
Act (TVPA) have argued that these repayment agreements, also known
as claw-back or “damages for quitting” contracts, are
akin to forced labor under the TVPA as employees are effectively
unable to quit because of the prohibitive costs. Repayment
contracts can be used in any industry but are especially prevalent
with nursing staffing agencies. The TVPA claims, in theory, can be
brought by any plaintiff who feels burdened by a reimbursement
agreement.
