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Judge awards $1.56 million in nurse staffing class action lawsuit

June 03, 2021

A federal judge in New York ruled this week in a class action lawsuit that staffing firm Prompt Nursing Employment Agency LLC, which does business as Sentosa Services, and owner Berish Rubenstein must pay $1.56 million in compensatory damages plus interest for breach of contract to a group of nurses from the Philippines, according to court records.

Judge Nina Gershon previously found Prompt Nursing and Rubenstein liable for breach of contract in September 2019 for failing to pay the nurses a base salary in accordance with the prevailing wage. The judge also found the company, Rubenstein and other defendants violated the Trafficking Victims Protection Act.

Prompt Nursing brought the nurses to the US from the Philippines under a contract that would have charged the nurses $25,000.

In addition to the breach of contract, the judge ruled the company, Rubenstein and other defendants liable for $1.56 million plus interest for violating the Trafficking Victims Protection Act. However, class members may recover damages from breach of contract or violations of the Trafficking Victims Protection Act, but not both.

Also, the judge did not rule in favor of punitive damages, instead allowing the question to go to trial.

The Philippines Star newspaper reported the suit was brought by Rose Ann Paguirigan in March 2017 and included more than 200 nurses recruited in the Philippines to work at nursing homes in New York. It reported Paguirigan presented evidence the nurses were not paid the prevailing wages promised in employment contracts. In addition, she presented evidence that nursing homes and recruiters used threats of serious harm to keep nurses from leaving, including the $25,000 termination fee.