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Touro Law Review

Abstract

For decades, for-profit colleges throughout the United States have exploited their students through a predatory business model. In February 2022, the Education Department approved $415 million in borrower defense claims for nearly 16,000 students who attended for-profit schools finding that these schools misrepresented post-graduation employment prospects. For-profit colleges also use manipulative recruitment tactics such as targeted advertising of low-income and minority students and providing false information to prospective students about loan repayment obligations post-graduation. Some for-profit institutions also rely on student labor in their facilities rather than hiring paid employees. This review discusses why it is imperative that courts scrutinize the tactics used by for-profit institutions when faced with a Fair Labor Standards Act claim.

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