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.

  • JayleneSlide@lemmy.world
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    2 days ago

    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 shift has also opened the door to a new industrial complex of employer-run, for-profit training sites and academies, which many workers are steered into when they’re hired for a job. Critics say employers now use these job training programs to force workers into debt and suppress wages, courtesy of TRAP contracts.

    This is heading into Company Town territory. Seriously predatory shit.

    • anomnom@sh.itjust.works
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      1 day ago

      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.

      • mic_check_one_two@lemmy.dbzer0.com
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        1 day ago

        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.