Training repayment agreement provisions (TRAPs),are a new form of “stay-or-pay” contract that indebts employees to their bosses. Often inserted into contracts without workers’ knowledge, these restrictive labor covenants turn employer-sponsored job training and education programs into conditional loans that must be paid back — sometimes at a premium — if employees leave before a set date.
Employers argue that these clauses are a way to recoup their investment in employees who decide to leave the company prematurely. But these contracts have come under fire from labor groups and regulators. Oftentimes, the amount of debt demanded under TRAP contracts — which can be upward of $50,000 — is far higher than the employer’s training costs.
SLAVERY, WITH EXTRA STEPS.
Me, before I read the article: this is nothing unusual, and I don’t see what the problem is. My employers have paid for some pretty advanced training over the years. In return, they asked me to agree to stay for six months. NBD…
Me, after the article: HOLY FUCKING SHIT!
This is heading into Company Town territory. Seriously predatory shit.
More like indentured servitude, or semi-voluntary slavery, as 1990s school books liked to sell it.
All they have left is rent seeking, even hiring an employee has to be part of some ponzi scheme
Because number must always go up. Must find new means of extraction.
Maybe if you have good deals in the company store it could be nice, right?
The gross part is that company scrip is still technically legal, as long as they pay at least minimum wage in USD. Like they can advertise a $700 per hour job… And only $7.25 is in USD, the remaining $692.75 is in company scrip. And they’ll claim that their scrip is valuable (and more convenient) to the employees, but a loaf of bread in the company store costs $1400.
I hope the company store sells cheap rent!
The only thing cheap at a company store are the laborers.
Like maybe raise all prices of the largest brick and mortar store and then offer employee discounts…
Yep. “New” is propagandist phrasing.