We’ve been pleased to see increased federal government attention focused on corporate abuses of working families, particularly on issues related to non-compete agreements, predatory medical debt collection, and junk fees, which have been at the forefront of our work over the past couple of years. This summer, we have worked to strengthen and defend the government’s efforts in these areas in various ways.
In early June, we filed a brief in the U.S. District Court in Texas on behalf of the Texas AFL-CIO in support of the Federal Trade Commission’s rule banning non-compete agreements. That brief highlighted the voices of workers in Texas and across the country who had told the FTC how non-competes impede their core economic freedoms.
Last month, in the wake of several years of litigation from Towards Justice on this issue, Governor Jared Polis signed HB-1380, which among other things, will mean that hospitals wanting to sue for outstanding medical bills will, at the very least, have to put their names on the lawsuit. Thanks to our courageous clients standing up to one of the most powerful organizations in the state, things have gotten better for all the Coloradans facing aggressive debt collection by their medical providers. For our clients, there’s little difference between wage theft by an employer and wage garnishment arising from unfair debts; little difference between powerful employers retaliating against them and powerful hospitals weaponizing the courts against them. That’s why we’ve been helping our clients fight back. Towards Justice Executive Director David Seligman went on 9NEWS Denver to talk about this issue and Towards Justice’s work.
Our case against UCHealth will go on, but HB-1380 is a huge win and will largely prohibit the practice going forward. We still have a long way to go in fighting back against a healthcare system that punishes its patients with debt collection litigation, but transparency is a huge step.
More public enforcers are joining our efforts to help workers fight back against “stay or pay” contracts that keep workers trapped in jobs through debt. In July, the U.S. Department of Labor filed a lawsuit against technology staffing company Smoothstack alleging it violated federal law by using predatory Training Repayment Agreement Provisions (TRAP). Towards Justice is representing workers suing the organization for illegal TRAPs – effectively keeping workers captive in underpaying jobs with poor working conditions. Then, this month, the Pennsylvania Attorney General announced a settlement with PetSmart regarding its alleged practice of charging low-wage workers for purportedly “free” training. Our lawsuit against PetSmart, helped to draw attention to the proliferation of TRAPs. But PetSmart argued that a forced arbitration clause prevented our client from suing in court. Public enforcement is critical to holding corporations accountable, and we hope the Pennsylvania AG action is an important step in that direction.
In the midst of all of this, FTC Chair Lina Khan met with Colorado Attorney General Phil Weiser to discuss the important work of protecting renters from housing junk fees and predatory practices. We were able to talk to Chair Kahn about our advocacy on behalf of working people who are subject to predatory junk fees, including in our litigation against the largest landlord in the country.
As millions across the country continue to deal with corporate abuse that undermines their bargaining power, nickels and dimes them, and uses the legal system to punish and harass them, we will continue to help people and communities fight back. We are committed to protecting workers’ rights through our litigation while supporting and pushing the government to do more.
