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The Towne Nursing settlement is a $1.85 million class-action deal that a New Jersey court finally approved on 7 October 2026 for Filipino nurses recruited by Towne Nursing Staff, who said their contracts trapped them with resignation penalties of tens of thousands of dollars. Nineteen nurses who already paid to quit will be refunded an average of about $25,000, more than 100 will have alleged debts cancelled, and Towne must change its contracts.
Key points
- Judge Owen C. McCarthy of Monmouth County Superior Court granted final approval on 7 October 2026; no class member objected, and Towne denied wrongdoing.
- $474,121 refunds 19 nurses who paid to resign (about $25,000 each on average); nurses who never paid a penalty should get about $1,080 on average.
- Towne will drop mandatory arbitration, lost-profits damages, and most post-employment non-competes, and cap contracts at 6,240 hours.
What is the Towne Nursing settlement?
The case, Cruz v. Towne Nursing Staff, Inc., was brought by six Filipino nurses against Towne Nursing Staff of Howell, New Jersey, and its sister company Towne Pediatric Homecare. It covers more than 450 Filipino nurses recruited through Towne’s foreign nurse program across 30 states who signed contracts between 13 August 2014 and 26 May 2026, Nurse.org reported. GMA News put the number of nurses receiving payments or other benefits at about 575.
The nurses alleged that three-year contracts were used to stop them leaving, with penalties for resigning without “good reason.” The complaint cited the federal Trafficking Victims Protection Act, the Fair Labor Standards Act, and New Jersey and New York anti-trafficking and wage laws. Towne denied any wrongdoing, and the settlement ends the claims without a finding of liability.
Who gets paid and how much
| Item | Amount or outcome |
|---|---|
| Total settlement fund | $1.85 million (gross) |
| Refunds to 19 nurses who paid to resign | $474,121 total; about $25,000 average; one nurse $40,000, seven at least $30,000 |
| Nurses who left on or before 3 December 2025 | Alleged debts forgiven (more than 100 nurses) |
| Other class members | Share by hours worked; about $1,080 average; FLSA opt-in members (368) get 15% more |
| Attorneys’ fees and expenses | $604,916 fees; $35,252 expenses |
| Service awards and administration | $12,000 to each of six named plaintiffs; $22,850 administration |
What changes in Towne contracts
- No more mandatory arbitration or “loser-pays” arbitration terms.
- No lost-profits damages, and most post-employment non-competes are dropped.
- Contract terms capped at 6,240 hours, about three years.
- If a nurse leaves early without good reason, Towne can only seek defined “actual direct costs,” which shrink after 2,820 qualifying hours.
- Clearer disclosure of benefit-related costs, with options to accept or decline certain expenses, GMA News reported.
Why the Towne case matters for Filipino nurses
Nurse.org describes Towne as the sixth major case in five years over so-called “stay-or-pay” contracts for foreign-educated nurses, after cases involving Albany Medical Center, Sentosa/Prompt Nursing, Health Carousel, Advanced Care Staffing, and CommuniCare/WorldWide Healthcare. Plaintiffs’ lawyer Hugh Baran told NJ.com that “these kinds of contracts are not unique to Towne.”
For nurses moving to the US on employment-based green cards, the case is a reminder to read every contract term before signing. Visa wait times also matter: see our latest Visa Bulletin EB-3 update for nurses.
What it means for nurses
- Read the exit clause first. Check how much you would owe if you resigned early, how it is calculated, and whether it drops over time.
- Watch for arbitration and “loser-pays” terms. These can make it costly to challenge your employer.
- Check your wage level. The Towne nurses alleged they were paid at a lower Department of Labor wage level than their experience warranted.
- If you are a class member, contact the court-appointed administrator, Atticus Administration LLC, at 1-800-995-1532 with questions about payments.
Frequently asked questions
Who qualifies for the Towne Nursing settlement?
Filipino nurses recruited through Towne’s foreign nurse program who signed a contract with Towne Nursing Staff or Towne Pediatric Homecare between 13 August 2014 and 26 May 2026. The class covers nurses in 30 states. Questions about eligibility or payments go to the settlement administrator, Atticus Administration LLC.
How much will each nurse get from the Towne settlement?
It depends. Nineteen nurses who paid resignation penalties will be refunded about $25,000 on average, with one receiving $40,000. More than 100 nurses who left by 3 December 2025 will have alleged debts cancelled. Others share the remaining fund by hours worked, about $1,080 on average.
What is a stay-or-pay contract?
A stay-or-pay contract requires a worker to repay money, sometimes a large fixed penalty, if they leave before a set period ends. For foreign-educated nurses these clauses are often tied to recruitment and immigration costs. Several US lawsuits have challenged them as unfair or as forced-labor tactics.
Related on Nurses Notes
- Visa Bulletin EB-3 dates for nurses
- Marcos on nurse-to-patient ratios for Filipino nurses
- Nursing jobs at home and abroad
Sources
- Over 450 Filipino Nurses “Trapped” by $20K Early-Quit Fees Win $1.85M Settlement – Nurse.org, 15 October 2026
- US court approves $1.85 million settlement for 575 Filipino nurses – GMA News, 16 October 2026
This summary is for information only and does not replace official guidance or advice from a qualified professional. It is not legal or immigration advice.
