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Towne Nursing Settlement: $1.85M for Filipino Nurses’ Quit Fees

By Nurse on Duty

October 26, 2026

By Nurse on Duty · 25 October 2026 · Summarised from the original sources listed below

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.

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

What changes in Towne contracts

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

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

Sources

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.