In today’s News & Commentary, reporting on the consequences of forced arbitration for travel nurses, pay range transparency proliferates, and East Coast ports brace for large-scale strikes. 

The Huffington Post reported on Saturday the stories of several travel nurses recruited from abroad to work in the United States during the pandemic who are now facing forced arbitration rulings imposing penalties as high as $40,000 for terminating their employment. The nurses were recruited by healthcare staffing firm MedPro International from countries such as India and the Philippines.

The nurses allege they signed contracts at below market rate and were not informed about the cost of living in the United States. However, those contracts also required the nurses to complete the three-year term or face forced arbitration proceedings against them for tens of thousands of dollars in damages. 

In several cases, the nurses were unaware of the ongoing arbitration against them until they were sent a bill. This story highlights the consequences of forced arbitration as well as so-called “stay-or-pay” contracts like the ones the nurses signed with MedPro. These contracts have led some to liken the system to indentured servitude. One nurse cited the system as a key reason for his departure from his employment. “I resigned from MedPro International due to a profound feeling of forced labor, which I believe compromised the ethical and professional principles I hold dear,” said nurse Nishanth George in a court filing. 

Legislatures in several Democratic-majority states have passed pay transparency laws in recent years since Colorado became the first state to do so in 2021. In most cases, these laws require employers to include salary ranges for positions along with any job posting. A key justification in these requirements is shrinking the pay gap for women and workers of color.

Several individual cities have also joined this group, which includes Colorado as well as Washington, New York, California, Hawaii, and Maryland. Connecticut, Nevada, and Rhode Island require that information be made available either on request or at some point in the hiring process, but not in the initial advertisement. 

Illinois, Minnesota, Vermont, and Massachusetts have recently passed similar laws which will go into effect in 2025. With these new states, about 30% of the workforce will be covered by pay transparency laws come January 1st. New Jersey’s state Senate unanimously passed a transparency bill in June. That bill is now before the State Assembly. 

For the first time since 1977, a major walkout of dockworkers could come to East Coast ports. 45,000 ILA-represented dockworkers at thirty-six ports responsible for almost half of all U.S. imports are threatening a strike following the October 1st expiration of their current contract if their employers refuse to meet their demands. 

Workers are seeking, among other things, a 77% wage increase over the course of a six-year contract and a guarantee that their jobs will be secure in the face of increasing automation. The union and employers are reportedly not close to an agreement at this time. While President Biden could break the strike under the Taft-Hartley Act, his Administration has stated they are not considering such action. 

This strike action is also intended to ensure that workers receive a fair share of the record profits their employers were able to reap during the pandemic and associated demand surge.