NJ Court Approves $1.85 Million Nurse Settlement

A Superior Court judge finalized a class action settlement for 575 Filipino nurses involving excessive resignation charges.

Updated on Oct. 16, 2026 in Nursing Jobs

Bold flat-color editorial illustration featuring a minimalist neoclassical pillar, symbolizing a legal resolution in a formal, institutional register. — A New Jersey Superior Court judge approved a $1.85 million settlement to resolve class action claims by 575 nurses against Towne Nursing Staff. AI Illustration. Upload story photo >

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The Monmouth County Superior Court has approved a $1.85 million settlement to resolve claims from 575 Filipino nurses regarding alleged unfair employment contract penalties. The agreement mandates that Towne Nursing Staff Inc. and Towne Pediatric Homecare LLC reform their contract disclosures for future hires.

Why it matters

The settlement addresses allegations of excessive charges imposed on foreign-born nurses who resigned before fulfilling contract terms. By resolving this class action, the companies avoid a full trial while providing financial restitution and debt relief to affected healthcare professionals across 30 states.

The settlement includes $1.85 million in total funds for 575 nurses, with 19 individuals receiving full reimbursement averaging $25,000 each. Meanwhile, more than 100 nurses will have their debts canceled, while others receive an average payout of $1,080.

The players

Owen McCarthy

He is the Monmouth County Superior Court Judge who granted final approval to the settlement.

Towne Nursing Staff Inc.

This is a nursing recruitment and staffing firm involved in the class action settlement.

Towne Pediatric Homecare LLC

This is a healthcare company linked to the nursing recruitment litigation.

The details

The lawsuit challenged the practices of Towne Nursing Staff Inc. and Towne Pediatric Homecare LLC, which reportedly charged significant penalties to nurses who left their positions early. While the court granted approval without a finding of liability, the companies are now required to update their contract disclosures.

December 3, 2025: Debts are canceled for nurses who resigned before this date.
October 7, 2026: The Monmouth County Superior Court granted final approval to the settlement.

Market Landscape

This settlement highlights increased scrutiny on the employment contracts utilized by international nursing recruitment agencies. It positions these firms under closer regulatory and legal observation regarding their labor retention and exit fee structures.

Eligible Filipino nurses involved in the class action will receive either direct payouts or debt forgiveness as stipulated by the court order. For future applicants, the change in contract disclosure requirements should provide greater clarity regarding potential resignation penalties.

The takeaway

Workers involved in international recruitment should carefully review contract clauses related to early resignation penalties to understand their financial liability. This case emphasizes the importance of transparency in employment agreements, especially for professionals transitioning between international jurisdictions.