Filipino Nurses Reach $2.2M Settlement in ‘Indentured Servitude’ Case Against Employers

A group of nurses recruited from the Philippines reached a $2.2 million settlement after alleging they were forced to work under what one nurse described as “essentially indentured servitude,” according to court filings in the U.S. District Court for the Southern District of Ohio.

The case—Villarin v. Health Care Facility Management LLC (No. 1:23-cv-00097)—was brought by registered nurse Ariane Rose Villarin in February 2023. Villarin accused Health Care Facility Management LLC (doing business as CommuniCare Family of Companies) and WorldWide HealthStaff Solutions LLC of violating federal labor laws by binding foreign-educated nurses to work contracts that required repayment of visa and recruiting costs if they left their jobs early.

Allegations of Forced Labor

According to Villarin’s amended complaint, the staffing companies required Filipino nurses to sign contracts imposing up to $16,000 in penalty fees if they failed to remain with CommuniCare for at least three years. She alleged the companies used threats of lawsuits and financial penalties to prevent nurses from leaving, despite unpaid overtime and poor working conditions.

Villarin claimed these repayment provisions violated the Trafficking Victims Protection Act (TVPA) and the Fair Labor Standards Act (FLSA). “CommuniCare’s ‘employment’ is essentially indentured servitude,” the complaint stated.

Settlement Terms

Terms of the proposed settlement agreement filed February 13, 2026 include:

• CommuniCare will pay $700,000 and WorldWide HealthStaff Solutions will contribute $300,000 to approximately 220 nurses sponsored between 2013 and 2025.
• Nurses who previously repaid part of the contractual penalties will receive a 50% reimbursement.
• Remaining funds will be distributed based on how long each nurse worked with the company.
• Both companies agreed to forgive all existing and potential repayment obligations, valued at an additional $1.2 million in debt relief ("meaning the total estimated value of the Settlement to the Class is at least $2.2 million").
• Any unclaimed settlement funds after 180 days will be donated to the Human Trafficking Legal Center, according to court filings.

What the Lawyers Say

“This settlement provides significant monetary and non-monetary relief to settlement class members,” said Hugh Baran, Villarin’s attorney with Katz Banks Kumin LLP, in a statement to Law360. “We look forward to the court’s decision on the motion for preliminary approval and certification.”

Neither CommuniCare nor WorldWide HealthStaff Solutions responded to Law360’s requests for comment as of publication.

A Broader Warning to Employers

The case highlights growing legal scrutiny of recruitment practices targeting foreign-educated nurses, especially repayment or “liquidated damages” clauses tied to visa sponsorships. In recent years, similar suits have challenged staffing firms’ use of large penalties to deter nurses from leaving jobs with poor conditions or long hours.

As international nurse recruitment continues to rise, attorneys and advocates emphasize that repayment clauses must comply with U.S. labor laws. The U.S. Department of Justice has warned that excessive financial penalties or threats related to immigration status may constitute forced labor violations under federal law.

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