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October 21, 2017 04:00 pm

Code School Fined $375K Over Employment Claims and Licensing Issues

An anonymous reader quotes Ars Technica:[O]ne of the most prominent institutions, New York's Flatiron School, will be shelling out $375,000 to settle charges brought by New York Attorney General Eric Schneiderman's office. The AG said the school operated for a period without the proper educational license, and it improperly marketed both its job placement rates and the salaries of its graduates. New York regulators didn't find any inaccuracies in Flatiron's "outcomes report," a document the company is proud of. However, the Attorney General's office found that certain statements made on Flatiron's website didn't constitute "clear and conspicuous" disclosure. For instance, Flatiron claimed that 98.5 percent of graduates were employed within 180 days of graduation. However, only by carefully reading the outcomes report would one find that the rate included not just full-time employees, but apprentices, contract workers, and freelancers. Some of the freelancers worked for less than 12 weeks. The school also reported an average salary of $74,447 but didn't mention on its website that the average salary claim only applied to graduates who achieved full-time employment. That group comprised only 58 percent of classroom graduates and 39 percent of those who took online courses. The school's courses last 12 to 16 weeks, and cost between $12,000 and $15,000, according to a statement from the attorney general's office [PDF]. (Or $1,500 a month for an onine coding class). Eligible graduate can claim their share of the $375,000 by filing a complaint within the next thee months.

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